StockMarketNifty.com

In what could blow up into a major stock market scam, a couple from Mumbai, has allegedly raised close to Rs 100 crore from investors and indulged in circular trading to the tune of close to Rs 10,000 crore over the past year. The couple are now absconding and the role of brokerages is under the scanner.

Kirit Fatania, popularly known as Kirit Maharaj, has salvaged many a tortured soul. But he could not escape becoming a vicitim of Sudhir and Madhu Jhunjhunwala, Mumbai-based investors and former followers of Kirit Fatania. The duo allegedly cheated Maharaj and his wealthy followers of close to Rs 80 crore by assuring them a return of 60% per annum from stock market.   CNBC TV18 has now obtained exclusive information that the Income Tax (I-T) department has come across evidence of the couple ploughing the money they raised from investors into massive trading operations across multiple leading brokerages. I-T Department sources say the Jhunjhunwalas could have taken stock market positions worth more than Rs 10,000 crore through circular trading i.e. moving the invested amount across several brokerages and multiple trading positions. The I-T Department is also believed to have stumbled on evidence of financial dealings between Jhunjhunwala and some key employees in research wings of a few broking outfits. A scrutiny of tax filings of some of these employees has revealed windfall gains in the past year.  The Department has also sealed Jhunjhunwala’s bank account opened with Malad Sahakari bank earlier this year. The I-T department is believed to have handed over details to Sebi for further probe into the stock market operations of the Jhunjhunwallas.