Major Financial Scandal Hits DB Stock Broking in Hyderabad
Telangana | Written by :Hyderabad With claims of cheating investors out of Rs 7,000 crores, DB Stock Broking has become embroiled in a major financial scandal in Hyderabad.
Following many victim complaints, the Cyberabad Economic Offences Wing has opened cases, mainly in Hyderabad but also in major cities like 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 Telangana and Andhra Pradesh 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.
Deepankar Barman and his friends have been accused by the Cyberabad police with a number of offenses, including criminal breach of trust and cheating.
Section 5 of the Telangana Protection of Depositors of Financial Establishments Act is also being used to carry out the investigation.