EXCLUSIVE: Police complaint filed against Motilal Oswal Securities Ltd. for Rs 35 lakhs fraud


Radhika Dhawad | Oct 5, 2018 17:22

Motilal Oswal

Mumbai based media executive Naresh Bounthiyal lodged a complaint at Borivali police station, Mumbai, against India’s leading online share trade company Motilal Oswal Securities Limited (MOS) for duping him of Rs 35 lakhs. Bounthiyal took the legal action against MOS hoping to recover his entire 35 lakhs. Bounthiyal has accused MOS of trading his shares worth Rs 35 lakhs without any pre-trade authorisation and consent from him. The police have taken Bounthiyal’s statement in the case and they are in the process of taking statements from MOS. According to our sources in Borivali police station, the FIR can be registered anytime soon. 

Bounthiyal told Nation Next, “Some representatives of MOS approached and convinced me to open an account with them. Subsequently I transferred few of my securities through ICICI Direct to the demat account, which MOS opened for me. But MOS indulged in unfair trade practices by trading my shares worth Rs 35 lakhs, without my consent or approval. I was in touch with Sheetal Jagawat and Avinash from Dhruv Securities, which is the sub-broker of MOS from Borivali west branch of Mumbai.”

He added, “Avinash used to provide me a financial statement, which consisted of my detailed transactions, on the basis of which I had even been filing my income tax returns. From 2011 to 2016, I’d given a total amount of Rs 20,58,292 lakhs through cheque and Rs 6 lakh worth securities to MOS. However, Sheetal, on October 13, 2016, revealed that Avinash had exhausted my entire securities due to unauthorised share trading. The MOS financial statement, on the basis of which I’d paid my tax returns, were also fraud. Sheetal even told me that five of their clients met the same fate as mine.”

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However, Bounthiyal said that Avinash finally confessed about his fraudulent activities, which the former claimed to have video-recorded. Bounthiyal said that subsequently when he met Motilal Oswal, Chairman and Managing Director of Motilal Oswal Securities Limited, Oswal assured him of taking a strict legal action against sub-broker Avinash. Bounthiyal, expressing his disappointment over Oswal’s failure of keeping his commitment, said, “I was later told by Oswal that since Dhruv Securities had earned Rs 6 lakh by fraudulent activities through brokerage, I would be offered only Rs 6 lakhs as a compensation, an amount, which they later rose to a mere Rs 8 lakhs against the loss of my hard earned Rs 35 lakh.”

Bounthiyal stated that the case is currently under arbitration at the National Stock Exchange (NSE). He said on 6 March 2018, an IGRP (Investor Grievance Resolution Panel) order was also passed in his favour. He said, “The NSE arbitrator has upheld the decision of IGRP, where it had directed MOS to give me a relief of Rs 10 lakhs. But, I intend to go for a further appeal in NSE to get all my money back.” 

When Nation Next spoke to Motilal Oswal about the alleged fraud, he said, “I’d met Naresh Bounthiyal to discuss the issue. He’s a big liar. He’s done all the tricks. He’s threatening and blackmailing me through political parties. He’s trying to put all kinds of political pressure on me. We’re a reputed and leading firm. He’s doing every possible trick to have his way. I request you to ignore these kinds of blackmailers. Let the matter get solved through SEBI and other agencies. I have all the proofs of everything.”

When we asked Oswal to show us the said proofs, he sent a mail to Nation Next, which carried only a statement by MOS. (See images).

Mumbai based media executive Naresh Bounthiyal lodged a complaint against Motilal Oswal Securities Limited (MOS) for duping him of Rs 35 lakhs.
Statement 1
Mumbai based media executive Naresh Bounthiyal lodged a complaint against Motilal Oswal Securities Limited (MOS) for duping him of Rs 35 lakhs.
Statement 2

Bountiyal, when asked to respond to the statement sent by Oswal to Nation Next, said, “Where are the so-called proofs against me? It’s just a statement by them.”