The Crime Branch Unit No. 11 has achieved a major breakthrough in the ₹4,672 crore dabba trading scam by apprehending the prime accused. Dhiman Gandhi (33), was arrested from Mahavir Nagar, Kandivali west. Despite operating without a license, Gandhi was allegedly involved in trading activities through the 'Moody' application.
Dabba trading refers to share trading conducted outside authorized stock exchanges in order to evade tax payments.
Betting without incurring real transaction
It is also known as box trading or bucket trading. According to reports, some traders and brokers bet on stock price movements without incurring a real transaction to take physical ownership of a particular stock. It is gambling centered around stock price movements.
During the investigation, the Crime Branch discovered that Dhiman Gandhi played a central role in this scam. Acting on information regarding Gandhi's whereabouts, the police laid a trap and detained him at Sanket building, Mahavir Nagar, Kandivali West. Following this interrogation, Gandhi reportedly confessed to his crimes, leading to his arrest. The Crime Branch team conducted the operation in the presence of a National Stock Exchange officer and two witnesses.
Scam involved a turnover of ₹4,672 crore
Vinayak Chavan, Police Inspector, Crime Branch Unit 11, revealed that Jatin Mehta, another accused, had given money to the main accused Dhiman Gandhi. This scam involved a turnover of nearly ₹4,672 crore, causing a revenue loss to the government. Police sources said the further interrogation of Gandhi is likely to result in unearthing the complete ramifications of the mega scam.
Jatin Mehta was the first accused apprehended in his case. The accused traded through an app called Moody and the money earned was accounted for every Thursday. Jatin Mehta worked as coordinator and brought in customers through word of mouth publicity. The customers were told that trading through the app does not attract tax deductions.
