Bank Employees Among Eight Arrested in Rs 97-Crore Stock Investment Fraud

On October 15, Bengaluru Police announced the arrest of eight individuals, including a manager and three sales executives from Axis Bank, in relation to a Rs 97-crore fraud scheme that promised large returns through stock investments.

According to a police statement, 254 cases tied to this scam have been registered across India. Investigators discovered that fraudulent transactions totaling Rs 97 crore were facilitated through six bank accounts, which had been opened by bank employees.

The arrested individuals were identified as Kishore Sahu, a manager at Axis Bank’s Nagarabhavi branch in West Bengaluru, and sales executives Manohar, Karthik, and Rakesh. Additionally, four others, namely Lakshmikanta, Raghuraj, Kengegowda, and Mala CP, who managed mule accounts, were also detained.

An Axis Bank spokesperson commented that the matter is under investigation and that the bank is cooperating fully with authorities to expedite the process.

The investigation was launched after a resident of Yelahanka, North Bengaluru, filed a complaint in March. The complainant, whose identity has not been revealed, reported being added to a WhatsApp group offering stock trading tips, promising returns of 10 times the investment in a trading account.

Initially, the victim invested Rs 50,000 and received messages suggesting substantial profits. By June, he had invested Rs 1.5 crore in total. The alleged fraudsters provided manipulated screenshots showing the account had grown to Rs 28 crore. When they requested a “server management fee” of Rs 75 lakh to release the funds, the man became suspicious and reported the incident to the Cyber Crime Police.

The investigation traced multiple suspicious bank accounts to the suspects, including two current accounts at an Axis Bank branch in Nagarabhavi. These accounts, linked to individuals from Chikkamagaluru, lacked proper documentation for residency or business operations. Four additional accounts were also opened under questionable circumstances, with Rs 97 crore transacted through them altogether.

The arrests of the bank manager and the sales executives occurred on September 26, and a court placed them in police custody for 12 days. During their interrogation, the suspects provided information leading to the arrest of four individuals from Chikkamagaluru, including a woman, on September 29. All the accused are currently in judicial custody.

Authorities are continuing their investigation, with 254 cases registered nationwide, and are searching for nine additional suspects, some of whom may be located abroad.

The Reserve Bank of India and the Securities and Exchange Board of India have issued warnings about fraudsters promising high returns, advising the public to seek financial advice only from registered professionals, as scams through messaging platforms remain on the rise.