Bengaluru: Axis Bank Manager and 3 Sales Executives Arrested in ₹ 97-Crore Stock Market Scam
Bengaluru: Axis Bank Manager and 3 Sales Executives Arrested in ₹97-Crore Stock Market Scam
In a major crackdown, Bengaluru Police arrested eight individuals, including a manager and three sales executives from Axis Bank, for their involvement in a ₹97-crore stock market scam that duped victims by promising hefty returns on investments. The cyber-crime division uncovered fraudulent transactions conducted through six suspicious bank accounts opened by the bank employees.
Key Arrests in the Scam: The individuals arrested include Kishore Sahu, a manager at Axis Bank’s Nagarabhavi branch in West Bengaluru, and sales executives Manohar, Karthik, and Rakesh. Four others—Lakshmikanta, Raghuraj, Kengegowda and Mala CP—who were operating mule accounts, were also detained. Police are continuing to investigate the case, with nine additional suspects still at large, some believed to be abroad.
The Modus Operandi: The investigation was triggered after a resident of Yelahanka, North Bengaluru, filed a complaint in March, claiming he had been lured into a WhatsApp group that offered stock trading tips with the promise of returns ten times his initial investment. After investing ₹50,000 and receiving fraudulent confirmations of profits, the victim went on to invest ₹1.5 crore by June. The scammers sent him doctored screenshots showing that his trading account had grown to ₹28 crore but demanded a “server management fee” of ₹75 lakh to withdraw the funds.
Sensing something was wrong, the man approached the Cyber Crime Police, who discovered multiple fraudulent bank accounts linked to the accused. Two accounts, traced to Axis Bank’s Nagarabhavi branch, had been opened without proper documentation to verify residency or business activities. A total of ₹97 crore had been transacted through six accounts, all managed by the arrested bank staff.
Bank and Regulatory Response: Axis Bank, in a statement, confirmed its full cooperation with the authorities and emphasized that the matter was under investigation. The bank added that steps would be taken to expedite the process.
The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) have previously issued warnings about scams involving promises of exaggerated returns. They continue to urge citizens to seek investment advice only from registered professionals as scams through messaging apps are on the rise.
Broader Impact: Police revealed that 254 cases linked to this scam have been registered nationwide. Authorities are working to track down additional suspects and have urged the public to be cautious of fraudulent investment schemes. The arrested bank officials are now in judicial custody, and the investigation remains ongoing.
