Mumbai Crime: EOW Arrests 45-Year-Old Vadodara Man In ₹16 Crore Share Fraud, Allegedly Helped Woman Impersonate Shareholder

Mumbai, September 1, 2026: The Economic Offences Wing (EOW) of the Mumbai Police has arrested 45-year-old Sarfaraz Jumma­sha Shah from Vadodara, Gujarat, in connection with an alleged Rs 16 crore share fraud involving the illegal dematerialisation and sale of 54,000 bonus shares belonging to two legitimate shareholders.

Shah was arrested on August 31, 2026, at around 3 pm by a team from EOW Unit 7 (Shares), Mumbai, with the assistance of the J.P. Road Police Station in Vadodara.

He was subsequently brought to Mumbai and is being produced before the 47th Court at Esplanade on September 1, where the police are seeking seven days' custody for further investigation.

The case, registered as EOW Crime Register No. 58/2024, was initially registered under Sections 409, 419, 467, 468, 471 and 34 of the Indian Penal Code. The alleged fraud involves property worth approximately Rs 16 crore.

54,000 Bonus Shares Allegedly Siphoned Off

According to the complaint filed by business consultant Vaibhav Shivkumar Joshi, the fraud relates to 54,000 bonus shares of Balkrishna Industries Ltd., held in the names of Vanita Krishnakant Gandhi and Sudha Gandhi under Folio No. V00019.

Police allege that an unidentified woman impersonated Vanita Gandhi and, using forged documents, opened a fraudulent demat account with Motilal Oswal Financial Services Ltd.

The KYC details were allegedly manipulated in collusion with certain persons, following which the 54,000 bonus shares were credited to the fraudulent demat account and subsequently sold in the open market.

The proceeds from the sale were allegedly not retained in the impersonator's account but were transferred through various bank accounts of proprietary firms.

Shah Allegedly Arranged Accommodation

During the investigation, police allegedly found that Shah had arranged rented accommodation at Flat No. 603, Tower B, Akshar Residency, Akshar Chowk, Vadodara, for the woman impersonating Vanita Gandhi.

According to investigators, Shah also paid the monthly rent to the landlord, identified as Jayantibhai Dipubhai Waghri. Police further allege that Shah submitted the documents required for dematerialisation of the shares to Motilal Oswal Financial Services Ltd.

Investigators claim that he used the photograph of the woman impersonating Vanita Gandhi to prepare forged identity and residential documents, including a PAN card, Aadhaar card and voter ID, which were allegedly used to open bank and demat accounts in the name of the fake Vanita Gandhi.

Rs 11.32 Crore Allegedly Received In Cash

According to the police investigation, Shah allegedly received Rs 11.32 crore in cash through transactions linked to the sale of the shares.

Investigators suspect that Shah was one of the key accused in the alleged conspiracy and that he played a crucial role in illegally transferring the legitimate shareholders' 54,000 bonus shares into the fraudulent demat account before they were sold in the stock market.

Police Trace Forged Documents, Money Trail

Police want to ascertain who prepared the forged documents, from where they were obtained and who assisted in opening the fraudulent bank and demat accounts.

Investigators also want to trace the 54,000 bonus shares and the related dividend warrants, determine how the shares were transferred and sold, and identify the accounts into which the proceeds were routed.

The police are also investigating the alleged involvement of employees or other persons associated with KFin Technologies Ltd., the registrar and transfer agent, and Motilal Oswal Financial Services Ltd.

Investigators are examining the alleged misuse and fabrication of Aadhaar, PAN, voter ID and other identity documents, as well as a purported death certificate and other documents allegedly used in the process of dematerialising the jointly held shares.

Police have also stated that Shah had earlier been questioned during the investigation but allegedly failed to provide complete information regarding crucial aspects of the case.

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The EOW is now probing the complete financial trail, the identities and roles of other alleged accomplices and the manner in which the forged documents and fraudulent demat accounts were created and used.

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