Mumbai Crime Branch had busted an illegal “Dabba Trading” racket operated by a 45-year-old resident of West Kandivali. It has been found that he has done share transactions of over ₹4,672 crores and caused a revenue loss of ₹1.95 crores in the last four months.
₹4,672 Crore ‘Dabba Trading’ Scam
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Dabba Trading is an illegal form of trading in which operators allow people to trade in equities outside the stock exchange platform to avoid taxes. It can also be referred to as a betting practice, where people bet on the stock price without any natural transition.
The accused has been identified as Jatin Suresh Mehta and arrested from Kandivali. Local police have insight into the illegal trading that had been running at office number 5 of the Sanket Building, which is in the Mahavir Nagar area of Kandivali West.
On investigation with the help of the National Stock Exchange (NSE) and Multi-Commodity Exchange (MCX), it was found that Mehat was not having any permission or license for stock trading and working as a broker. He did not have any legal permission to run the stock exchange. He was running this dabba trading by using an application named “Moody” and was able to dupe the government by avoiding various taxes.
Local police raided the office of Mehta and found ₹50,000 in cash and five mobile phones, a laptop, a tab, and some other electronic equipment from his office, which had been used for this illegal trading. It has been found that Mehta was using spot trading through his application for this illegal trading.
Police have checked his laptop and found that he has been dealing primarily in cash and trading of ₹4,672 crore from March 2023 to 20 June 2023. It has also been discovered that Mehta has made a revenue loss of around ₹1.95 crores by avoiding various payments, including security transaction tax and capital gain tax, SEBI turnover fees, state government stamp duty, stock exchange trading revenue, and more.
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