DB Stock Broking Fraud: Police Detain Suspect as Rs7,000 Crore Scam Unravels Leaving 23,000 Investors in Panic, Says Report

Moneylife Digital Team 28 August 2024

Investor Interest

In a shocking development that has rattled the investment community, police on Wednesday detained a suspect in connection with DB Stock Broking, a company alleged to have defrauded investors of nearly Rs7,000 crore, says a report from Deccan Chronicle.

According to the report, Monalisa Das, believed to be connected to Deepankar Barman, director of the firm, was apprehended by Pan Bazar police while attempting to evade arrest in Guwahati's Khaghuli area. DB Stock Broking, which had offices in several major cities, including Guwahati, Nalbari, Rangia, Hyderabad, Bengaluru and Mumbai is now under intense scrutiny as authorities unravel the extent of the financial scandal.

The principal figure behind the firm, Mr Barman, is accused of orchestrating a scam that extended beyond Indian borders, affecting investors in Australia as well.

However, according to the report, Mr Barman has fled the country, leaving behind thousands of distraught investors. DB Stock Broking, which began operations in 2018, had built a large clientele over the years, promising lucrative returns through investments made on Angel One, a popular stock market platform. However, these promises of high returns are now suspected to have been part of a massive fraudulent scheme, the report says.

DB Stock Broking attracted clients with promises of extraordinarily high returns, which included 120% annually, 54% over six months, 27% over three months, and 8% monthly. These figures, which seemed too good to be true, are now under investigation as authorities suspect that the Guwahati office, under Mr Barman's management, was primarily used for fraudulent activities.

In a recent video message, Mr Barman attempted to placate worried investors, acknowledging payment delays and promising improvements by September 2024.

According to Deccan Chronicle, he reassured clients, saying, "There has been a communication gap between me and my clients for the last couple of days. Everything will return to normal soon. We have faced some service issues, but I am confident these will be resolved by September this year."

Despite Mr Barman assurances, panic has gripped investors, many of whom have been facing irregular payments for the last couple of months. The situation escalated recently when several victims of the scam gathered outside Mr Barman's home in Jalukbari, demanding answers from his family.

In their frustration, some of the investors reportedly assaulted Mr Barman’s father, reflecting the growing anger among those affected by the scam, the report says.

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