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Delhi Woman Loses INR3.38 Lakh in Stock-Market Scam, Two Men Arrested

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  Published in Stocks and Investing on Monday, November 17th 2025 at 21:10 GMT by ThePrint

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A Delhi Woman Cheated Out of ₹3.38 Lakh in a Stock‑Market Scam – Two Arrested

In a recent case that highlights the growing menace of financial fraud in India, a woman from Delhi lost ₹3.38 lakh after falling prey to a sophisticated stock‑market scam. According to a complaint filed with the Delhi Police, two men were arrested and charged with cheating and other related offences. The incident, reported by The Print on 25 November 2023, underscores the need for greater vigilance among investors and stricter enforcement of securities regulations.

The Victim and the Scam

The victim, a 42‑year‑old resident of Delhi’s Dwarka area, had saved a substantial amount of money over the years for her future plans. She had heard from a friend about a “high‑yield” investment opportunity in the stock market and was persuaded to invest a lump sum of ₹3.38 lakh (approximately US$4,500) through a broker she trusted. The broker, who was allegedly a well‑known “stock‑market consultant,” promised her guaranteed returns in a short period, citing an “insider” source that could “crack the market”.

The scheme was run through a fake online trading platform that used a legitimate‑looking website and a mobile application. The fraudster’s real name was not disclosed in the article, but he was described as a middle‑aged man who had previously operated a small brokerage firm in Delhi. According to police records, he had been involved in similar fraudulent activities in the past, but no prior convictions had been recorded.

Once the woman deposited the money, the fraudster instructed her to transfer the funds to a “safety account” that he claimed was managed by a third‑party investment firm. The transfer was made through a “secure” bank channel, after which the fraudster sent a confirmation message stating that the funds were now invested in the stock market and would yield profits within a month. The woman, reassured by the messages and the apparent legitimacy of the account, did not question the transaction. However, when she later attempted to withdraw her money, she discovered that her account was closed and that the “investment” had vanished.

Police Investigation and Arrests

The complaint, filed by the woman at the Delhi Police’s Central Crime Branch (CCB), led to a rapid investigation. The police traced the financial transactions through the bank statements and found that the money had been transferred to an offshore account in the Seychelles. The investigation revealed that the fraudster had used a shell company registered in the Cayman Islands to launder the money.

On 24 November 2023, two suspects were arrested in the Delhi‑Gurgaon corridor. One suspect was the alleged fraudster, who had previously been a “broker” and had used a fake identity. The second suspect was an accomplice who acted as the “online intermediary” on the fake trading platform. Both men were taken into custody by the Delhi Police’s Special Cell (SC) for investigation under sections 420 and 463 of the Indian Penal Code (IPC) – for cheating and fraud, respectively – as well as under the Prevention of Money Laundering Act (PMLA).

In a statement, the police said that the suspects had been involved in at least three other similar scams across North India. The Delhi Police’s cyber‑crime unit is continuing to gather evidence from bank records, phone logs and the fraudulent online platform’s server logs. The investigation is also being coordinated with the Securities and Exchange Board of India (SEBI) and the Central Bureau of Investigation (CBI), given the cross‑border nature of the money‑laundering component.

Broader Context: The Rise of Stock‑Market Frauds in India

The case is part of a larger pattern of financial fraud that has come to light in recent years. The Print has previously reported on a number of similar incidents involving fake mutual funds, Ponzi‑style investment schemes and fraudulent stock‑market consultants. According to SEBI’s 2023–24 Annual Report, there were over 1,200 complaints of securities fraud in India, with the majority involving individual investors who were lured by promises of high returns in a short time.

Experts warn that the proliferation of digital trading platforms and the lack of adequate consumer protection mechanisms have made it easier for fraudsters to exploit unsuspecting investors. The Indian government has responded by tightening regulations under the SEBI (Investment Adviser) Regulations, 2022, which now require advisers to register with SEBI and undergo background checks. Additionally, the government has launched a “Know Your Investor” (KYI) campaign to educate the public about common red flags in investment schemes.

Legal and Regulatory Take‑aways

1. IPC Sections 420 & 463 – The fraudster was charged under the IPC for cheating and fraud, which are punishable by imprisonment of up to seven years and a fine.
2. PMLA – Money‑laundering charges could add another layer of prosecution, potentially leading to longer sentences and asset forfeiture.
3. SEBI Enforcement – SEBI’s Enforcement Directorate can pursue civil penalties against the fraudulent platform, and can seek disgorgement of funds from the perpetrators.
4. Consumer Protection Act – The victim may file a claim under the Consumer Protection Act, 2019, for loss of her investment.

What Investors Should Do

• Verify Credentials – Always check the registration status of brokers and investment advisers with SEBI.
• Ask for Documentation – Legitimate investors will provide proof of account numbers, transaction records and signed agreements.
• Beware of “Too Good to Be True” Returns – High returns in a short period are a classic hallmark of Ponzi schemes.
• Report Early – If you suspect fraud, file a complaint with the nearest police station or with the Consumer Forum.

Conclusion

The arrest of the two suspects in the Delhi woman’s stock‑market scam sends a strong signal that the authorities are willing to act against financial fraud. However, the case also highlights a critical need for investor education and stronger regulatory oversight. As the digital financial ecosystem expands, both the government and the private sector must work together to create a safe environment for investors of all backgrounds. The ongoing investigation by the Delhi Police, in collaboration with SEBI and other agencies, will hopefully bring justice to the victim and deter future fraudsters from exploiting the vulnerabilities of unsuspecting investors.