Hyderabad: A significant financial scandal involving DB Stock Broking has emerged in Hyderabad, with allegations of defrauding investors to the tune of Rs 7,000 crores.
The Cyberabad Economic Offences Wing has registered cases following numerous complaints from victims, primarily centred in Hyderabad but also extending to major cities such as Mumbai, Bengaluru, Kolkata, and Guwahati.
Background of the scam
DB Stock Broking, operational since 2018, attracted thousands of clients by promising exceptionally high returns on investments.
Reports indicate that the firm offered schemes with annual returns of 120%, six-month returns of 54%, and monthly returns of 8%.
However, investors began reporting halted payments from July 2024 onwards, leading to widespread panic among those who had invested substantial amounts.
Victims’ complaints
Victims have come forward with claims of significant financial losses. For instance, one investor alleged that he had invested Rs 11 lakh but received no returns.
Another reported an investment of Rs 36.8 lakh, receiving only a fraction back. Police identified around 20,000 victims in Hyderabad alone.
Legal action
The police have filed charges against Deepankar Barman, the company’s chairman, and several associates for criminal breach of trust and cheating.
Barman is reportedly in hiding in Australia after fleeing India on August 21, 2024. Authorities are urging more victims to come forward as investigations continue.
