Assam: 22-year-old arrested for ₹2,200 crore stock market scam
What's the story
A 22-year-old man from Dibrugarh, Assam, identified as Bishal Phukan, has been arrested for allegedly masterminding a massive stock market fraud of approximately ₹2,200 crore.
The young man's extravagant lifestyle and significant spending habits had previously raised eyebrows.
He lured investors from Assam and Arunachal Pradesh, with promises of 30% returns on their investments in just 60 days.
Deceptive operations
Fraudulent business ventures and investments
Phukan is accused of setting up four companies across various sectors, including pharmaceuticals, production, and construction through his illicit activities.
He also made significant investments in the Assamese film industry, and acquired multiple properties.
His fraudulent actions were exposed after a major stock fraud case in Guwahati, that led to intensified investigations into his dealings.
Investigation intensifies
Disappearance of stock broking company owner raises suspicions
The investigation into Phukan's activities gained momentum after Dipankar Burman, the owner of DB Stock Broking Company, mysteriously disappeared.
This incident further fueled suspicions about Phukan's involvement in fraudulent activities.
In an attempt to allay public concerns, Phukan took to Facebook claiming that he had returned all the money to his investors and assured them their funds were safe.
Arrests made
Phukan and his manager arrested
Despite Phukan's attempts to defuse the situation, Dibrugarh Police raided his home on September 2, resulting in his arrest alongside his manager, Biplab.
Both individuals are now facing charges under a non-bailable case. The police also confiscated documents related to the scam during their raid.
The authorities are now searching for Assamese choreographer Sumi Borah, who is believed to have connections with Phukan's network.
Government response
Assam CM orders investigation into trading fraud cases
In response to the serious nature of these allegations, Assam Chief Minister Himanta Biswa Sarma has ordered an investigation into all trading fraud cases.
He has also issued a warning to the public about the risks of fraudulent online stock market investments.
"I want to tell the people that there is no such system of investing money in the stock market through these online trading firms," Sarma said, urging citizens to stay vigilant and avoid falling prey to such scams.