The Economic Offences Wing (EOW) officials on Monday arrested a 59-year-old share broker for allegedly cheating a family of ₹22.8 crore by misusing their shares.
The accused, Ajay Modi, a resident of Bhulabhai Desai Road, prepared a bogus power of attorney and mortgaged the shares with a private bank to avail of loan.
He has been charged under Indian Penal Code (IPC) sections for cheating, forgery and criminal breach of trust.
Rajool Patel, a resident of Warden Road, told the police that she and her mother Nirmala Kapadia had shares in a company.
They had kept the shares with share broker Modi, who was known to the family for a long time. The complainant’s late husband Vikram had also given Modi ₹2.75crore between 1999 and 2008 through cheques to invest in shares. The family had given Modi, money and shares worth ₹22.8 crore.
“The family was getting dividend on their shares, but it suddenly stopped in 2008. Patel suspected something amiss. When she checked with the companies, she was told that the shares were no longer in her name and had been transferred long ago. When the family confronted Modi, he reportedly admitted to have misused the shares,” said a source in the EOW.
A police source said, “Modi allegedly prepared a fake power of attorney by forging signatures of the complainant and her mother and then mortgaged the family’s share with a private bank to avail loan for him and his family members. And since he failed to repay the bank loans, the bank confiscated the shares and liquidated them to cover up the loss.”
{{/usCountry}}A police source said, “Modi allegedly prepared a fake power of attorney by forging signatures of the complainant and her mother and then mortgaged the family’s share with a private bank to avail loan for him and his family members. And since he failed to repay the bank loans, the bank confiscated the shares and liquidated them to cover up the loss.”
{{/usCountry}}After his crime was found out, Modi promised the family that he would repay the money with a compensation of ₹ 25lakh and signed three MoUs with them. However, even after signing the pact, he failed to pay the amount.
In 2014, the family lodged a complaint with the Mumbai police’s EOW against Modi and his family members.
Officials of the general cheating unit of EOW collected details from the banks of the fraudulent transactions by Modi, recorded bank officials’ statement and collected relevant documentary evidences, including the three MoUs. Modi was arrested on Monday.
Cops are checking the involvement of his family members in the crime and also trying to find out if Modi had diverted funds to buy property.
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