Brokerage Firm Directors Accused of Diverting Funds, Case Registered Under BNS
Rajkot: In a shocking case of alleged financial fraud, a Jamnagar-based doctor has accused five directors of a brokerage firm of cheating him out of more than ₹41 lakh by failing to credit purchased shares to his demat account and allegedly diverting the funds for personal use.
The complainant, Dr Kishor Sajjanmal Maheshwari, who runs Jamnagar Maheshwari Hospital, lodged a complaint at the Jamnagar City B Division police station. He has alleged criminal breach of trust and financial misconduct against the directors of Arcadia Shares and Stock Brokers Private Limited.
According to the complaint, Dr Maheshwari opened a trading account with the firm in 2009. Trading activity reportedly stopped in February 2021. Around that time, one of the directors allegedly informed him via email that the company had been “frozen by NSE due to suspicious financial activities.”
The discrepancies surfaced after the doctor received a 29-page order dated February 8, 2024, from the National Stock Exchange of India (NSE). The order reportedly stated that investments made in six blue-chip companies and other firms were not reflected on the NSE platform.
Police officials said the total investment involved 10,092 shares valued at approximately ₹41.86 lakh. The complaint names five directors, accusing them of misappropriating funds and failing to transfer the shares to the doctor’s demat account as promised.
Speaking to TOI, police said the complainant initially refrained from approaching authorities because he was assured by the accused that the money would be returned. He also cited close family relations with the directors as the reason for continuing to trust them.
However, when the funds were not recovered and documentary evidence — including margin and ledger statements — indicated discrepancies, he decided to file a formal complaint. An earlier press release by the NSE had reportedly advised investors facing issues with Arcadia to register complaints.
Police have registered a case under Sections 316(5) and 54 of the Bharatiya Nyaya Sanhita (BNS). Further investigation is underway to determine the extent of the alleged fraud and accountability of the accused directors.
