In a big crackdown, Bengaluru police arrested Axis Bank manager Kishore Sahu and seven others in connection with a massive Rs 97 crore stock market fraud. The arrested included three sales executives from Axis Bank, Manohar, Karthik, and Rakesh. Along with Sahu, they were accused of helping orchestrate the fraudulent transactions by way of six Axis Bank accounts. According to police, the scam had been roped in through WhatsApp groups to lure victims into a much-hyped scheme promising them astronomical returns on investments.
The scam came to light after a resident of Yelahanka filed a complaint in March 2024. The complainant had been added to a group on WhatsApp that promised him 10x returns from stock investments. He put in Rs 50,000 hoping that he would have reflected high profits as did on his confirmations, only to find it was false. He was convinced over some time to put Rs 1.5 crore into the same thinking that his account had grown to Rs 28 crore.
Bengaluru police arrest Axis Bank manager: Know the whole story behind fraud
To her shock, the scammers demanded a “server management fee” of Rs 75 lakh to release the money. The victim was suspicious, and she immediately reported the incident to the Cyber Crime as the Bengaluru police arrest the Axis Bank manager in Rs 97 crore stock market fraud along with others.
The probe unearthed the fact that the dummy transactions add up to an aggregate of Rs 97 crores, all of which were done using six Axis Bank accounts. The accounts proved to be those of unverified persons and, hence appeared suspicious. Two such accounts were identified at the Nagarabhavi branch of Axis Bank in West Bengaluru, and the interrogation of bank personnel took place consequent to it.
The bank is fully cooperating with the authorities. In a statement, it said:
“The matter is currently under investigation and Axis Bank is fully cooperating with the investigating authorities to expedite the process.”
Four accomplices have also been taken into custody by the Bengaluru police-Lakshmikanta, Raghuraj, Kengegowda, and Mala CP who were running mule accounts. All eight accused have been brought under arrest. While the bank employees were arrested on September 26, the accedes were rounded up two days later on September 29. Nine more arrests are being followed through at present, and many of them have managed to escape abroad.
While Axis Bank claims to cooperate completely with the investigation and is working closely with the authorities, this case represents yet another opening up of the alarming menace of cyber fraud in India. Concerned authorities like RBI and SEBI also advise people to be cautious about such impossible investment returns and to seek advice only from registered professionals.
