Illegal forex trade unearthed in Assam, 38 arrested
The recent uncovering of an illegal forex trading operation in Assam, led to the arrest of 38 individuals. This operation involves several thousand crores of rupees and affects many investors.
Illegal forex trading activities likely involve the unauthorized trading of foreign currencies through unregulated platforms, which can lead to significant financial losses for investors.
The scale of the operation suggests that it was extensive, potentially affecting a large number of people and involving substantial amounts of money.
The fact that illegal forex trading has been operating openly in Assam for several months, allegedly without significant action from authorities, raises serious concerns about oversight and the role of law enforcement in preventing such fraud.
This illegal activity has occurred “at the very nose of the police and administration” indicates a potential lapse in surveillance and enforcement.
SEBI’s recent action in removing around 15,000 content sites linked to unregistered financial influencers (finfluencers) or those providing unauthorized investment advice is a significant step toward regulating the financial advisory space and protecting investors from misleading or fraudulent information.
The lack of direct regulation over online forex trading in India has made it a potential breeding ground for scams and fraudulent schemes. While the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) are responsible for overseeing financial markets, they have limited jurisdiction over certain forex trading activities, particularly those conducted on online platforms.
The crackdown on illegal forex trading has led to the arrest of more than 38 individuals across various districts. Of them, 12 have been arrested from Hailakandi district. 8 from Tezpur, 2 each from Sivsagar, Jorhat and Dhubri. Five people have been detained from Dalgaon in Darang district, one person from Hojai.
Vishal Phukan, a 22-year-old from Dibrugarh, is reportedly one of the key individuals involved in a large-scale online forex trading fraud that swindled about Rs 2,000 crore from investors.
The Noonmati Police conducted raids at Ideal View Apartment in Patharkweri, Guwahati, targeting Sumi and Tapan Bora, both involved in forex fraud. Despite prior intelligence, the couple managed to escape before the police arrived.
Dipankar Barman, owner of DB Stock, is currently absconding after being implicated in a major scam looting Rs 8,000 crore through online trading.
Swapnil Das was arrested from Guwahati on Tuesday for his involvement in an online trading fraud.
Ranjir Kakati, is accused of defrauding Rs 12,000 crore through online trading fraud, making him one of the biggest perpetrators in the ongoing crackdown.
Hemen Rabha was arrested from Tezpur on Wednesday for looting more than Rs 300 crore from investors through fraudulent trading activities.
Bhushan Barua, a popular sculptor, is accused of looting Rs 10 crore through online trading fraud and is currently absconding.
Haryana-based Trading FX is under investigation for opening fraudulent forex trading platforms and looting significant sums of money.
Chief Minister Himanta Biswa Sarma: On a four-day visit to Upper Assam, CM Sarma vowed that the state government is committed to taking strict action against those involved, including influential figures. He emphasized the ongoing investigation and urged the public to cooperate by providing any information about the fraudsters.
The Chief Minister informed the Central government about the ongoing fraud and stressed that financial transactions in India require RBI approval. He also warned people against investing in unapproved platforms without proper due diligence.
A Central government financial expert highlighted that the lack of direct regulation by the RBI and SEBI leaves online forex trading vulnerable to fraud. Fraudsters often use falsified or manipulated certificates to lure investors, and the involvement of influential figures adds a layer of complexity, making it harder for people to detect the scams.
Public campaigns are essential to educate investors about the dangers of unregulated forex trading and the need for due diligence, he added.
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