Airline Executive Loses Rs 2.9 Crore in Decade-Long Investment Scam
A senior official working with a major airline has become the victim of a massive financial fraud. He lost a staggering Rs 2.91 crore over nearly ten years. The alleged perpetrator is his relationship manager, who is accused of manipulating share trading accounts and forging documents.
How the Scam Unfolded
The complainant, Deepak D, is 58 years old. He lives in the Hiranandani area of Powai, Mumbai, with his wife and daughter. A common friend introduced him to Ajay Palith in 2014. Palith presented himself as an employee of a reputable share trading and investment firm.
Palith explained the basics of equity and derivatives trading to Deepak. He promised high returns on investments. Convinced by these promises, Deepak agreed to invest. He opened a trading and demat account following Palith's directions.
In July 2014, Deepak provided necessary documents to open the account. These included his PAN card, passport, a cancelled cheque, and Form 16. He also signed a power of attorney document, granting Palith significant control.
Manipulation and False Profits
Deepak was not experienced in trading. Therefore, Palith managed the account on his behalf. The victim started with an initial investment of Rs 5 lakh. Over the years, he invested approximately Rs 1 lakh in equity and nearly Rs 2.9 crore in derivatives.
Palith sent periodic capital gains statements to Deepak. These statements showed consistent profits. Based on these reports, Deepak even paid income tax on the supposed earnings.
Police revealed a shocking detail. Three to four years ago, Palith incurred a loss of Rs 50 lakh in the investments. Instead of informing Deepak, he manipulated the statement. He showed a profit of Rs 5 lakh and sent the falsified document to the victim.
The Fraud Comes to Light
The scam began to unravel in 2023. Deepak's chartered accountant noticed serious discrepancies. The capital gains statements from Palith did not match the annual statements issued by the actual investment firm.
The accountant flagged these irregularities. He advised Deepak to immediately close the account and withdraw all funds. Last year, Deepak informed Palith of his decision to withdraw his money and shut the demat account.
Palith then delivered devastating news. He claimed the derivatives balance was zero. He said the account had been completely wiped out due to heavy market losses.
The FIR states another critical allegation. Palith informed Deepak that he had changed the registered email ID linked to the trading account in 2022. He did this without Deepak's knowledge or consent. This change prevented Deepak from receiving official statements and OTP alerts directly from the firm.
Police Investigation and Charges
Deepak later approached the investment firm directly. Officials there informed him that relationship managers are not authorized to operate client accounts. They also cannot access login credentials.
Upon obtaining official records, Deepak discovered the truth. The capital gains statements sent by Palith were allegedly forged. Deepak then filed a written complaint with the Powai police station.
After a preliminary investigation, police registered a case on Thursday. They charged Ajay Palith under sections related to cheating, criminal breach of trust, and forgery. The accused will be served a notice soon.
A Powai police officer shared insights from the probe. It appears Palith was not the direct beneficiary of the fraud. Instead, he manipulated statements to hide market losses from the victim. Police are also checking Palith's past records. They suspect he may have duped another person using a similar method.
The case highlights the risks investors face when granting excessive control to financial advisors. It underscores the importance of verifying official statements directly with financial institutions.
