Explained: How Ranjit Kakoty duped 150,000 investors of Rs 260 crore

The Central Bureau of Investigation (CBI) on Friday filed a chargesheet against Ranjit Kakoty, the main accused in a Rs 260 crore trading scam that duped around 150,000 investors. The charges were presented before a special CBI court in Guwahati.

 

How Kakoty lured investors into the scheme

 

Kakoty promised investors triple returns on their investments within 18 months. While initial payouts were made to build trust, he soon stopped responding, leaving many investors in financial distress.

 

“The accused deceived investors by orchestrating an illegal deposit scheme that defrauded them by offering guaranteed 30 per cent returns. He used forged documents such as notarised stamp papers and falsified investment reports to misappropriate funds for personal use,” the CBI said in a press release.

 

Kakoty and his associates operated through an online platform, www.tradingfx.live, which played a pivotal role in the fraudulent activities. The scheme is part of a broader probe into investment scams in Assam, initiated at the request of the state government, involving 41 similar cases.

 

How the CBI tracked Kakoty

 

CBI investigators traced databases containing detailed records of the defrauded investors. These records helped establish the extent of the scam and identify the perpetrators.

 

In addition to Kakoty’s case, the CBI filed a separate chargesheet against Monalisa Das, who was implicated in a financial scam linked to DB Stock Consultancy, co-owned by Deepankar Barman and involving eight others.

 

“The organisation is accused of defrauding clients across India,” the press release added.

 

Recent scams that rattled investors in India

 

Here are some high-profile stock trading scams uncovered recently:

 

Fake stock brokerage racket in Ahmedabad (July 2024)  

Ahmedabad Police, in collaboration with the Enforcement Directorate (ED), busted a scam affecting over 300 victims and causing losses of Rs 200 crore. The operation involved a fake brokerage firm that lured investors with promises of blue-chip stock investments. Authorities recovered Rs 50 crore during the investigation.

 

Kolkata Ponzi scheme (August 2024)

The ED exposed a Ponzi scheme posing as a stock trading platform. It offered 40 per cent returns but simply circulated funds from new investors to pay earlier ones. The scam involved thousands of victims, with Rs 75 crore in assets seized and several arrests made.

 

Pune day trading scam (June 2024)  

Pune Police arrested individuals running a platform that mimicked stock market data to show fake profits. The scheme affected 150 investors, resulting in Rs 30 crore in losses. Digital footprints helped authorities track the suspects.

 

Fake share trading app in Mumbai (April 2024)  

A group in Mumbai created a fraudulent app mimicking genuine trading platforms. Victims were shown falsified stock growth to entice further investment. Over 100 investors lost Rs 50 crore. An IT professional behind the app used advanced algorithms to make the scam appear credible.

 

Cyber investment scams on the rise

 

The Indian Cyber Crime Coordination Centre (I4C) reported a steep rise in cyber-related investment frauds this year. Between January and April 2024:

 

20,043 trading scams accounted for Rs 14,204.83 crore.  

62,687 investment scams amounted to Rs 2,225.82 crore. 

“To protect themselves from online investment scams, investors should thoroughly research platforms, verify regulatory licences, and avoid those offering guaranteed or unusually high returns. 

 

Check for clear terms, secure websites, and reliable customer support. Be wary of platforms that use pressure tactics or unregulated payment methods. Verify endorsements independently, steer clear of pyramid or Ponzi schemes, and watch out for red flags like fake testimonials and suspicious social media pages,” said Soumen Mohanty, Partner at AQUILAW. 

"To protect themselves from scammers like Ranjit Kakoty, investors must exercise caution and conduct thorough due diligence before investing," added Zeeshan Farooqui, Partner, King Stubb & Kasiva, Advocates and Attorneys.

 

“If victimised, stop all transactions immediately, report the scam to authorities such as Sebi and law enforcement agencies, file an FIR, and notify your bank to help prevent further losses,” said Mohanty. 

"Using secure and verified payment methods and avoiding investments on platforms with vague contact details or anonymous operators can help mitigate risks. Regularly monitoring your investments and reporting suspicious activities to authorities are crucial steps," Farooqui added.