Police bust illegal 'dabba' trading gang, five arrested

In a crackdown on tax pilferage, the Jalandhar Commissionerate Police, led by Commissioner of Police Swapan Sharma, has dismantled a gang operating an illegal trading network known as 'dabba trading'. Five persons have been arrested in connection with the scam.

Explaining the modus operandi, Commissioner Sharma described dabba trading as an unregulated and illegal form of trading that bypasses official stock exchanges and regulatory bodies. Transactions in such trading are conducted internally by operators, avoiding oversight from the Securities and Exchange Board of India (SEBI). This not only cheats investors but also evades government taxes, he said.

The arrested persons have been identified as Jatish Arora, alias Gori, Karan Dogra, alias Karan, Anil Anand, alias Monu, Darpan Seth, alias Rinku Seth and Tarun Bhardwaj, alias Kannu, all residents of Jalandhar. Two other suspects, Gurdyal Singh, alias Raju, and Mangal have also been named in the case.

The police investigation revealed that the gang kingpin Jatish Arora began learning about the stock market in 2019 at Bear Bull Office in Dana Mandi here in Jalandhar. By 2022, he started his own unregistered operation under the name "Sai Share Broker" and conducted illegal trading using the Angel Broking app.

"Arora reportedly installed APK files on clients’ phones, allowing them to buy and sell commodities without regulatory approval", CP Sharma disclosed.

He said the illegal operation came to light following a tip-off about the activities under "Sai Share Broker." An FIR has been registered at Police Station Division 1, under the Securities Contracts (Regulation) Act.

Commissioner Sharma emphasised that the accused profited by adding more clients and offering unauthorised stock tips. Further investigations are underway and additional details are expected to emerge as the case progresses. "This operation underscores the police’s commitment to addressing financial crimes and ensuring regulatory compliance in trading activities", he said.