Surat: A prop trading scam attributed to a company named Greenvol Enterprises or Green Wall Enterprises, has now been found to be much bigger than expected, with the losses estimated to reach ₹. 150 crore from the ₹.5 crore lost earlier.
The scam was unearthed after Green Wall Enterprises key employees suddenly disappeared in August this year, and people doing business with it approached Jainam Stock Broking as the company was believed to be its agent.
According to investigators, Green Wall Enterprises lured investors with an impossible offer: to trade ₹50 lakh against a deposit of just ₹5 lakh, with monthly interest payouts between 6% and 18%.
To create a mirage of credibility, payments were initially made on time, but many brokers working with the company soon realised the fraud, when their clients money was stuck in the scam.
As per market sources, a Greater Noida-based firm iTrade Associates, linked to Green Wall, also collapsed, with nearly ₹40 crore of investors money being stuck. Further investments through various channels weren’t even documented, as investors trusted their brokers with their money. Run by a Darshan Joshi aka DJ, victims claims almost ₹40 crore is stuck with the company, as its trading terminals were abruptly disabled.
Many of these investors who had handed over funds informally through cash or kind are too scared to file cases due to the backlash, or are expecting Jainam Broking to quietly settle the losses they incurred.
However, Jainam Broking has denied involvement in the case, stating that Green Wall wasn’t its appointed agent.
“Green wall is not associated with us in any manner and no transaction is done with Green Wall Enterprises. Since there is no relationship between Green Wall and Jainam Broking Ltd, as stated above, Jainam Broking Ltd is not responsible for any transaction done with Green Wall, iTrade Associates or Darshan Joshi”
Two key individuals have been identified behind the scam- Nimit Shah and Hiren Jadav, with Nimit still on the run. Further details are now awaited, especially since the Economic Offences Wing (EOW) of the Surat Police is now investigating the scam further.
