Mumbai Police Nab Broker In ₹4,672 Cr Illegal 'Dabba Trading' Case

Mumbai Police confirmed the arrest of Jatin Sureshbhai Mehta, a 45-year-old share broker from Kandivali, Mumbai, on Thursday who was allegedly involved in illegal ‘dabba trading.’ This unlawful practice involves trading shares outside the authorised stock exchange platform.

What Happened? Per a PTI report, officials claim that Mehta’s activities from March 23 to June 20, 2023, resulted in transactions worth ₹4,672 crore, bypassing several mandatory taxes and fees.

He allegedly cheated the government out of more than ₹1.95 crore by avoiding security transaction tax, capital gains tax, state government stamp duty charges, SEBI turnover fees, and stock exchange turnover revenue.

Acting on specific information about Mehta’s illicit trading, a joint team from the Mumbai Crime Branch, the National Stock Exchange (NSE), and the Multi Commodity Exchange (MCX) conducted a raid on his office in Kandivali’s Mahaveer Nagar on Tuesday. They seized ₹50,000 in cash, five mobile phones, a laptop, a tablet, a paper shredder, and a pen drive. They also discovered crucial documents.

See also: Why This Ashish Dhawan-Backed Pharma Stock Is Tanking Today

Investigation revealed that Mehta used an application called ‘Moody’ for his ‘dabba trading’ operations without any valid stock exchange license.

The police have charged Mehta under various sections of the Indian Penal Code and provisions of the Securities Contracts (Regulation) Act. The sections include criminal breach of trust, cheating, criminal conspiracy, and causing the disappearance of evidence of an offence. The case is currently under investigation.

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