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2 stockbroking firms cheat company of Rs 110 crore

MUMBAI: The city

economic offences wing

(EOW) has initiated a probe against two

stockbroking firms

for allegedly cheating an Andheri firm of Rs 110 crore.

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Verona Capital Ltd

has lodged a cheating complaint against the two stockbroking firms and their chairman, executive director and director. The two firms traded in shares on BSE and NSE for Verona Capital (VC) between 2009 and 2015.

In March 2015, during an audit, VC found it was suffering huge losses. On checking its records obtained from BSE, NSE and the two stockbroking firms, the company was shocked to find that the latter were indulging in unauthorized

trading

in its account. The firm then approached the police. VC officials said the two firms did not pay Rs 19 crore which was credited to them and in another transaction, deducted Rs 9 crore as ‘delayed’ payment charges, which wasn’t applicable.

The Andheri firm claimed the two firms had bought 47 lakh shares of Pipavav Defence and Offshore Engineering Co Ltd for Rs 35 crore on its behalf. When Pipavav was taken over by a private firm, VC asked them to sell its shares, but the latter refused. Also, in the future and options segment, the accused firms allegedly did not show some transactions and also made fake transactions, causing a loss of Rs 47 crore to Verona Capital.

“We are going through all the records. The firms have committed breach of the trust, criminal conspiracy and cheating,” said an EOW officer. —Mateen Hafeez

About the Author

Mateen Hafeez

Mateen Hafeez, special correspondent at The Times of India in Mum... Read More
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