Mumbai Lawyer Loses Rs 9.94 Crore in Sophisticated Cyber Investment Fraud Scheme

The app displayed consistent profits, encouraging Mhatre to invest substantial sums (Representational).

New Delhi:

A 65-year-old retired lawyer and former Larsen & Toubro (L&T) officer from Mumbai has fallen victim to a sophisticated cyber scam, losing Rs 9.94 crore to fraudsters operating under the guise of a respected financial company.

Ghanshyam Machhindra Mhatre, a Mulund resident who previously served as Admin and Industrial Relations Head at L&T before working as a legal consultant, was deceived by scammers impersonating officials from Anand Rathi Shares & Stock Brokers Ltd.

The elaborate fraud operation began in June when Mhatre received a WhatsApp message from someone identifying herself as Suman Gupta, who claimed to be an "admin" at Anand Rathi Shares & Stock Brokers Ltd. She persuaded him to invest through a trading application called "AR Trade Mobi," which was presented as the company's official investment platform.

To establish credibility, Gupta provided a download link and requested Mhatre's KYC details, including his PAN card information.

Following his initial engagement, Mhatre was added to a WhatsApp group titled "Anand Rathi VIP 12," where multiple individuals posed as market analysts and investment advisors. The group regularly shared stock updates, IPO alerts, and mutual fund recommendations, creating the impression of legitimate financial activities.

As the app began showing consistent profits, Mhatre was convinced his investments were growing successfully. Encouraged by these apparent returns, he gradually increased his investment amounts.

Between June and November, Mhatre transferred a total of Rs 9,94,76,958 to various bank accounts provided by the fraudsters. Each transaction was represented as investments in IPOs or mutual funds.

When Mhatre later attempted to withdraw his earnings, all transactions failed. The scammers initially claimed technical issues were causing the problems and subsequently demanded additional funds for taxes and commissions.

Growing suspicious, Mhatre visited the authentic Anand Rathi office in Malad (East), where officials confirmed that no employee named Suman Gupta worked for their company and that the "AR Trade Mobi" app had no affiliation with their organization.

Realizing he had been trapped in a meticulously planned online investment fraud, Mhatre filed a complaint with the East Region Cyber Police (Shivajinagar). Authorities registered an FIR under the Bharatiya Nyaya Sanhita (BNS) and the Information Technology Act against ten unidentified individuals.

Investigators believe the perpetrators are part of a nationwide network operating fraudulent WhatsApp groups under the names of reputable financial institutions, targeting victims with false promises of high investment returns.

Police have initiated efforts to trace the money trail and are working to identify and apprehend those responsible for the elaborate scam.