Banking on Fraud: Bengaluru Police Bust Axis Bank Manager in ₹97 Crore Stock Market Scam!
In a significant crackdown on financial fraud, the Bengaluru Police announced on October 15 that they have arrested eight individuals, including a manager and three sales executives from Axis Bank. The arrests are connected to a ₹97 crore scam involving promises of hefty returns through stock market investments.
The cyber crime division revealed that they have registered 254 cases across the country linked to this elaborate scheme. Fraudulent transactions were conducted through six bank accounts that were allegedly opened with the assistance of the bank staff involved.
Key Arrests Made
The individuals arrested include Kishore Sahu, a manager at Axis Bank's Nagarabhavi branch in West Bengaluru, and sales executives named Manohar, Karthik, and Rakesh. Additionally, four others identified as Lakshmikanta, Raghuraj, Kengegowda, and Mala C.P., who reportedly held mule accounts used in the fraud, have also been taken into custody.
When approached for a statement, an Axis Bank spokesperson said, "The matter is currently under investigation, and Axis Bank is fully cooperating with the investigating authorities to expedite the process."
The Fraud Unveiled
The investigation was initiated after a resident of Yelahanka in North Bengaluru filed a complaint in March. The victim reported being added to a WhatsApp group that offered stock trading tips, promising returns up to ten times the initial investment through a trading account.
Initially investing ₹50 lakh, the victim received messages indicating substantial profits, which encouraged him to invest a total of ₹1.5 crore by June. The fraudsters even sent manipulated screenshots showing the trading account had grown to ₹28 crore. Suspicion arose when they demanded an additional "server management fee" of ₹75 lakh to release the funds, prompting the victim to contact the Cyber Crime Police.
Investigative Findings
The probe led authorities to multiple bank accounts linked to the accused. Two current accounts were traced back to the Axis Bank branch in Nagarabhavi, opened without proper documentation supporting residency or business activities. Four more accounts with similar discrepancies were identified. In total, transactions amounting to ₹97 crore were routed through these six accounts.
The bank manager and sales executives were arrested on September 26 and remanded to 12-day police custody. Subsequent interrogations led to the arrest of four more individuals from Chikkamagaluru on September 29. Authorities are now searching for nine additional suspects, some of whom are believed to be abroad.
Warnings Issued
Both the Reserve Bank of India and the Securities and Exchange Board of India have repeatedly cautioned the public against schemes promising unrealistic returns. They advise investors to seek guidance only from registered professionals, as frauds perpetrated through messaging apps and other digital platforms continue to rise.
This case highlights the growing sophistication of financial frauds and the importance of due diligence when making investment decisions. The Bengaluru Police's swift action underscores the commitment of law enforcement agencies to clamp down on such fraudulent activities and protect investors.
