The crime branch on Tuesday busted an illegal “ dabba trading ” chatter and set up that the driver, a 45- time-old Kandivali West occupant, made share deals worth around ₹ 4,672 crore and caused a profit loss of around ₹1.95 crore in the once four months Dabba trading is an illegal form of trading in shares, where drivers of similar trading rings allow people to trade in equities outside the Stock exchange platform.
The indicted, Jatin Suresh Mehta, who worked as a share broker, was arrested for illegal share trading from Kandivali.
The police inspector Vinayak Chavan of unit 11 got an input that an illegal trading operation was being run from office number 5 in the Saket Building in the Mahavir Nagar area of Kandivali West.
The crime branch unit along with representatives of the National Stock Exchange( NSE) and Multi-Commodity Exchange( MCX) of India, verified that Mehta didn’t have any license or authorization to trade in shares.
Mehta wasn’t having any kind of legal authorization for running a stock exchange and was running illegal share trading using an operation videlicet ‘ temperamental ’ and duped the government by avoiding payment of colorful levies.
The common platoon raided Mehta’s office. During the raid, the crime branch also seized ₹ 50,000 in cash and five mobile phones along with a laptop, tab and other electronic outfit from the office.
The police officers said the outfit was used for illegal share trading. Mehta was using an operation and was making spot trading, said a police officer.
After checking the list of trading – substantially done in cash – set up in Mehta’s laptop, the police set up that the volume of the share trading between March 2023 and June 20 done by the indicted was around ₹ 4,672 crore.
farther disquisition the police learnt that Mehta caused profit loss to the tune of ₹1.95 crore by avoiding payments of security sale duty and capital gain duty, state government stamp duty, SEBI development freights, stock exchange trading profit, said deputy manager of police Raj Tilak Roshan of the crime branch Police registered a case of felonious breach of trust, cheating under applicable sections of the Indian Penal Code against the indicted and that of the Security Contract Regulation Act.
Mehta was produced before a court and remanded in police guardianship till June 26 Dabba trading is also known as box trading or pail trading.
It refers to trading shares outside authorized stock exchanges done through illegal means, primarily to avoid payment of levies.
It also refers to the practice of laying on stock price movements without bearing a real sale to take physical power of a particular stock. In other terms, it’s laying centered around stock price movements where the persons placing the bets gain, if the stock price goes up and loses to the broker if it goes down.
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