A Bandra based couple has registered a complaint against two men for allegedly defrauding them of Rs50 lakh. The accused have been booked under Sections 420, 405 and 463 of the Indian Penal Code.
Mount Mary Road resident - Hassanaly Dossani was introduced to the two brothers Bhaumik and Amit Gada in December of 2016. The former said he was an ex-banker running a firm with his brother that acted as the sub-broker for the Motilal Oswal financial group. He subsequently offered his services as an investment advisor.
Mr Dossani then visited their office in Ghatkopar to verify their claims. He met them a few times and finally decided to take up their offer on March 2017. He then opened a DEMAT account with Motilal Oswal Securities Ltd (MOSL) and transferred shares worth Rs40 lakh into the account. However, before the transfer, they had signed a contract with the brother’s firm, OSR Financial Services that prevented them from selling shares without prior consent from Mr Dossani and his wife.
Mr Dossani said he was given monthly statement of account on MOSL’s letterhead, which was duly stamped and signed. “Not being tech savvy, we never checked the real statement on emails, believing these copies to be authentic.
Besides, we were getting a regular flow of cash into our savings account which we were told were profits from these trades,” said the retired pharmaceutical professional.
In December 2018 the family wanted to liquidate a part of its position in the equity market due to a family emergency and instructed the Gada brothers to do the same. They kept evading the requests from Mr Dossani to liquidate his position and when they were finally confronted by him in January, they informed him that they had sold off shares worth Rs49 lakh without his knowledge or authority.
It was then that the couple took notice and cross checked all the statements provided to them by the brothers over email. It is then that they realised that the physical copies were forged and numbers on them were manipulated by them.
This is not the first time that the Motilal Oswal Group has been accused of permitting unauthorized trading. In 2006, Wing Commander CR Mohan Raj VM [Retd]
lost a significant part of his savings when the Motilal Oswal group sold his shares off without his instructions.
The Wing Commander subsequently took the case to District Consumer Forum where the Motilal Oswal group produced a bogus power of attorney (POA) to sway the case. However, the Consumer Court ruled in favour of Mr Mohan Raj.
He then lodged a complaint with the SEBI which in 2018 fined the Motilal Oswal group to the tune of Rs2 lakh.
Mr Dossani now finds himself in a financial fix as his emergency fund has been misappropriated by the Gada brothers who acted in cahoots with the Motilal Oswal Group.
When asked about the case, MOSL replied as follows:
1. Mr Amit Gada is a sub-broker of our company. We were not aware of actions of the sub-broker. However, in the month of February 2019, the sub-broker informed us that client has forcefully got some papers signed from him and he has got NC lodged with police.
Further, client has sent emails to our grievance id in the month of February / March 2019 and we have duly replied to the same.
2. As regards discrepancy, since we are not aware of which specific physical and digital documents you are referring to we are not in a position to comment on the same.
However we would like to inform you that we have duly sent copies of contract notes, ledgers, margin report etc, to the client’s email id, regularly informing client about the trades in her account. Also, we were regularly sending SMS to the client informing about the trades in her account. We have also provided to the client web-back office login facility where the client can view all the details with respect to her account. Further, we have sent hard copies of the ledger to the client.
There is no discrepancy in the documents provided by us to the client. It is also pertinent to mention here that we have done surveillance calling where the client confirmed that client is aware about all the trades in her account. In addition to this we would also like to inform you that the client for the purpose of trading in her account has transferred shares from her Demat account with another company.
The client has also at multiple times taken payout from her account.
3. Since police has registered an FIR on the complaint of client, we are cooperating with police in the investigation by providing information / documents sought by them