Doctor Alleges Financial Fraud by Brokerage Firm Directors

Accusations of Misappropriation

In a distressing incident of alleged financial fraud, a doctor from Jamnagar has accused five directors of a brokerage firm of defrauding him of over Rs 41 lakh. The complainant, Dr. Kishor Sajjanmal Maheshwari, who operates Jamnagar Maheshwari Hospital, has filed a complaint with the Jamnagar City B Division police station, alleging breach of trust and misappropriation of funds by the directors of Arcadia Shares and Stock Brokers Private Limited.

Details of the Complaint

Dr. Maheshwari opened a trading account with Arcadia Shares in 2009, but trading activities were reportedly halted in February 2021. Around that time, one of the directors informed him via email that the company had been “frozen by NSE due to suspicious financial activities.” The alleged discrepancies became apparent after the doctor received a 29-page order from the National Stock Exchange of India (NSE), dated February 8, 2024. This order indicated that investments made in six blue-chip companies and other firms were not recorded on the NSE platform.

Investment Overview

The total investment involved 10,092 shares, valued at approximately Rs 41.86 lakh. The complaint specifically names five directors, alleging criminal breach of trust and financial misconduct.

Delay in Reporting the Incident

In an interview with TOI, police mentioned that the complainant initially refrained from approaching authorities because he received assurances from the accused regarding the return of his funds. Dr. Maheshwari cited close family ties with the directors as a factor in his ongoing trust. However, as the funds remained unrecovered and based on documentary evidence, including margin and ledger statements, he ultimately decided to file a formal complaint.

Regulatory Advisory

An earlier press release from the NSE had encouraged investors encountering issues with Arcadia to submit complaints to the authorities.

Legal Proceedings Initiated

The police have registered a case under Sections 316(5) and 54 of the Bharatiya Nyaya Sanhita (BNS) in response to the allegations.