Mumbai: In a major financial fraud case, the Economic Offences Wing (EOW) of the Mumbai Police has arrested 50-year-old Hemang Shah, a businessman from Malabar Hill, for allegedly defrauding his elder brother, Mehul Shah, of Rs 9 crore. The case revolves around deceptive financial transactions carried out through businesses based in Peninsula Business Park, Lower Parel, between March 2020 and May 2025.
According to the police, the Shah brothers had jointly received Rs 2,500 crore from the sale of their family business, Anchor Electricals, to Panasonic in 2007. The company was originally established in 1963 by their fathers, Jadhavji Shah and Damji Lalji Shah.
After the sale, the brothers collaborated to form approximately 180 companies and continued joint investments, according to Hindustan Times report. Mehul’s complaint alleges that Hemang, leveraging his control over shared financial resources, promised to manage their surplus funds for higher returns through debentures and mutual fund investments.
However, he allegedly diverted a substantial portion of the investments into accounts under his name, while keeping Mehul misinformed with misleading updates.
In August 2024, Hemang reportedly advised Mehul against liquidating his funds, citing adverse market conditions. Suspicion grew when Mehul later discovered major discrepancies in the financial records, revealing a Rs 9 crore shortfall, as per report.
Following a detailed investigation, Hemang Shah was arrested and charged under sections 316(5) (criminal breach of trust) and 318(4) (cheating) of the newly implemented Bhartiya Nyaya Sanhita. Authorities confirmed that Hemang misused his position and violated the fiduciary trust between the brothers for personal financial gain.
