In a shocking development, Bengaluru Police arrested eight individuals, including an Axis Bank manager and three sales officers, for their involvement in a massive Rs. 97 crore stock-market fraud. The scam promised investors huge returns through stock market investments, luring them into the fraudulent scheme. The arrests were made after a detailed investigation revealed fake transactions conducted through bank accounts opened with the help of bank employees.
The Fraud Unveiled: 254 Cases Registered
Bengaluru’s cyber crime police uncovered a large-scale fraud involving the manipulation of banking systems to scam unsuspecting investors. According to the police, 254 cases related to this scam have been registered across India, with the fraudulent transactions amounting to Rs. 97 crore. The fraudsters executed the scam by opening six suspicious bank accounts with Axis Bank employees’ assistance.
Arrests and Key Accused
The arrested Axis Bank employees include bank manager Kishore Sahu and three sales officers — Manohar, Karthik, and Rakesh — all working at the Nagarbhavi branch in West Bengaluru. In addition to the bank employees, four other individuals who held fake accounts, identified as Laxmikant, Raghuraj, Kengegowda, and Mala CP, were also arrested.
The police investigation revealed that these fake accounts were used to launder and transfer large sums of money, all linked to fraudulent stock investment schemes.
How the Scam Worked: Luring Investors with False Promises
The investigation into this scam began when a Bengaluru resident from Yelahanka filed a complaint in March. He reported that he had been added to a WhatsApp group offering stock trading tips, with promises of 10 times the return on investment. Initially, the victim invested Rs. 50,000, and over time, the scammers manipulated him into investing as much as Rs. 1.5 crore by sending edited screenshots of large profits in his trading account.
The victim became suspicious when the scammers demanded a “server management fee” of Rs. 75 lakh for him to withdraw his funds. Realizing the deception, he filed a complaint with the cyber crime police, which led to the broader investigation.
Bank Accounts and Transactions Under Scrutiny
Upon further investigation, the police found several bank accounts linked to the accused individuals. Two current accounts were opened in Axis Bank’s Nagarbhavi branch, while the others were opened under suspicious circumstances without valid documentation.
Through these accounts, fraudulent transactions totaling Rs. 97 crore were made. The investigation further revealed that several other accounts linked to the fraud were opened in a branch in Chikkamagaluru. The account holders did not provide sufficient documents supporting their residence or business activities, raising further suspicions.
Police and Judicial Action
The arrested Axis Bank manager and sales officers were taken into custody on September 26 and later remanded to 12-day police custody. During their interrogation, they revealed the identities of six other individuals involved in the scam, four of whom were arrested on September 29.
Police said they are now on the lookout for nine more suspects, some of whom are believed to be residing abroad. The arrested individuals are currently in judicial custody as the investigation continues.
Warnings from RBI and SEBI
This fraud is a reminder of the growing number of financial scams in India, particularly those promising massive returns through unauthorized trading schemes. The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) have consistently warned the public to be cautious of such fraudulent schemes. Both institutions advise citizens to seek financial advice only from registered and authorized professionals.
