Bengaluru Police apprehends Axis Bank manager, sales executives in Rs 97-crore stock-market fraud

The Bengaluru Police has arrested eight people, including a manager and three sales executives of Axis Bank, in connection with a Rs 97-crore fraud that promised hefty returns through stock investments. The cyber-crime police have found that 254 cases linked to the scam have been registered across the country, according to the police as mentioned in a release.

Fraudulent transactions amounting to Rs 97 crore were carried out through six bank accounts opened by the bank staff.

The police identified those arrested as Kishore Sahu, a bank manager with Axis Bank's Nagarabhavi branch in West Bengaluru and sales executives Manohar, Karthik and Rakesh. Lakshmikanta, Raghuraj, Kengegowda and Mala CP, who held mule accounts, too, have been taken into custody, the police said.

An Axis Bank spokesperson was recorded to have said in a statement, "The matter is currently under investigation and Axis Bank is fully cooperating with the investigating authorities to expedite the process."

The probe began after a Yelahanka resident in north Bengaluru filed a complaint in March. The man said he was added to a WhatsApp group that allegedly provided stock trading tips, promising returns 10 times the investment in a trading account, the police said, without naming the complainant.

The man initially invested Rs 50,000 and received WhatsApp messages confirming big gains. He ended up “investing” Rs 1.5 crore by June, the complaint said.

The alleged scammers sent doctored screenshots showing that the trading account had grown to Rs 28 crore. The man got suspicious when they demanded a “server management fee” of Rs 75 lakh to withdraw the funds. He complained to the Cyber Crime Police.