Gujarat Police Cracks Down on Illegal Share Trading Operation in Rajkot
In a significant enforcement action, the state monitoring cell (SMC) of Gujarat Police conducted a targeted raid on Monday, dismantling an illicit share trading network, popularly known as 'dabba trading'. The operation was executed at a commercial complex located on Yagnik Road in Rajkot, following precise intelligence inputs.
Arrests and Seizures in the Raid
Law enforcement officials apprehended three suspects during the crackdown: Rakesh Popat, Mukesh Virdiya, and Mahesh Parmar. The arrests took place at offices numbered 108 and 109 within Madhav Complex. Among those detained, Rakesh Popat is identified as a history-sheeter with prior involvement in similar criminal activities.
Authorities confiscated a variety of electronic equipment crucial to the illegal operation. The seized items include multiple CPUs, keyboards, wifi dongles, mobile phones, and chargers, which were instrumental in facilitating the unauthorized trading activities.
Scale and Methods of the Illegal Trading Racket
According to police reports, Rakesh Popat admitted during interrogation that he, along with Mihir Kalyani, had been engaged in dabba trading for approximately four months. Shockingly, their transactions in the preceding week alone amounted to an estimated Rs 20 crore, highlighting the extensive scope of their operations.
The group employed sophisticated tactics to evade detection, operating on a weekly settlement basis. They systematically deleted transaction data every week to obscure their financial trails. Settlements were processed through a combination of bank transfers and hawala channels, utilizing angadia services for discreet money movement.
Legal Charges and Investigation Details
A formal case has been registered at the Pradyuman Nagar police station against nine individuals, including the primary accused Rakesh Popat and Mihir Kalyani. Other named suspects are Kamlesh, Ashok, Natukaka, Jaydeep, Hiten Khachar, Mukesh Viradiya, and Mahesh Parmar.
The charges filed against them encompass multiple sections of the Bharatiya Nyaya Sanhita, specifically Sections 316(5), 318(4), 319(2), 238, 61(2), and 2(7), in addition to provisions under the Information Technology Act. These legal actions underscore the serious nature of the offenses, which involve unauthorized stock market tips and unlicensed transactions via mobile applications.
Background and Intelligence Leads
SMC sources revealed that the operation was initiated based on specific intelligence indicating that Popat and Kalyani were orchestrating the dabba trading scheme. Their activities included providing illicit stock market advice and executing trades without the mandatory regulatory licenses, primarily through mobile apps.
The investigation further uncovered that Mihir Kalyani was utilizing a specialized application for trading in shares and precious metals, amplifying the racket's reach. Additionally, preliminary inquiries highlighted Rakesh Popat's criminal history, noting a previous dabba trading case filed against him in 2012, suggesting a pattern of involvement in such fraudulent practices.
This police action occurred just one day after Director General of Police K L N Rao presided over a regional crime conference at the Rajkot police commissioner's office on Sunday, emphasizing the ongoing focus on combating financial crimes in the region.
