Jamnagar Doctor Files Police Complaint Over Alleged Rs 41 Lakh Stock Fraud
A prominent doctor from Jamnagar has taken legal action, filing a formal complaint at the Jamnagar City B Division police station. The complaint alleges breach of trust and misappropriation of funds exceeding Rs 41 lakh by five directors of a brokerage firm. This case highlights growing concerns over financial misconduct in the stock market sector.
Details of the Alleged Fraud
The complainant, Dr. Kishor Sajjanmal Maheshwari, who operates Jamnagar Maheshwari Hospital, claims that shares purchased through Arcadia Shares and Stock Brokers Private Limited were never credited to his demat account. According to police reports, the invested funds were allegedly diverted for the personal use of the company's directors, raising serious questions about corporate governance and investor protection.
Dr. Maheshwari had opened a trading account with the firm back in 2009, but trading activities were halted in February 2021. He informed authorities that one of the directors communicated via email, stating the company had been "frozen by NSE due to suspicious financial activities." This revelation prompted further investigation into the matter.
National Stock Exchange Involvement
The alleged discrepancies came to light after Dr. Maheshwari received a 29-page order dated February 8, 2024, from the National Stock Exchange (NSE). The order reportedly indicated that investments made in six blue-chip companies and other stocks were not reflected on the NSE platform. The total investment involved 10,092 shares, with an approximate value of Rs 41.86 lakh, underscoring the significant financial impact on the victim.
In response to similar issues, the NSE had previously issued a press release advising investors facing problems with Arcadia to lodge formal complaints. This move by the regulatory body aims to safeguard investor interests and ensure accountability in the financial markets.
Named Directors and Legal Proceedings
In his complaint, Dr. Maheshwari named the following directors of Arcadia Shares and Stock Brokers Private Limited:
- Nitin Amrutlal
- Anthony Sequeta
- Prem Anthony Sequeta
- Yash Brahmbhatt
- Ramesh Brahmbhatt
Police officials noted that the complainant initially refrained from approaching authorities due to assurances from the accused that the funds would be returned. Dr. Maheshwari also cited close family relations with the directors as a reason for his continued trust. However, after the amount remained unrecovered and based on documentary evidence, including margin and ledger statements, he decided to file a formal complaint.
Legal Framework and Case Registration
A case has been registered under Sections 316(5) and 54 of the Bharatiya Nyaya Sanhita (BNS), which pertain to breach of trust and misappropriation of property. This legal action marks a critical step in addressing financial fraud and protecting investors from similar schemes in the future.
The incident serves as a stark reminder for investors to exercise due diligence and report suspicious activities promptly to regulatory bodies. As the investigation progresses, authorities are expected to delve deeper into the operations of the brokerage firm to prevent further such occurrences.
