India Probes Alleged ₹670 Crore Investment Scam Involving Two Hyderabad Firms

Retired Indian Navy commodore Sanjeev Gupta went to Cyberabad police on June 15, 2026, alleging that false promises had led him to invest in Shares Bazaar Private Limited. He told police that 10 other people had also put money into the two Hyderabad firms at the centre of his complaint, Shares Bazaar and Kisaan Parivar Limited.

Cyberabad’s Economic Offences Wing (EOW) is now investigating three cases involving the two firms. Police estimate that nearly 7,400 people across India invested about ₹670 crore (₹6.7 billion). More than 500 people have come forward, reporting combined losses of over ₹70 crore (₹700 million).

Promises of Up to 48% a Year

Shares Bazaar marketed an algorithmic stock-trading strategy. A September 2026 order by the Securities and Exchange Board of India (SEBI) documented plans offering annual returns of 18% to 48%, with investors told their principal was protected. Gupta’s complaint also described a separate offer from Kisaan Parivar. The company pitched an organic farming venture and allegedly offered 24% tax-free annual returns on an investment linked to land registration.

Where the Money Went

Police allege that money from new investors was used to pay earlier participants. Investigators say interest payments and repayments of principal stopped in October 2025.

In a separate review of earlier transactions, SEBI identified ₹13.81 crore in transfers from Shares Bazaar to Kisaan Parivar and ₹3.35 crore flowing in the opposite direction. The regulator also found payments to earlier investors and said the records it examined showed no evidence of the scheme’s funds being invested in securities as represented. Shares Bazaar disputed the allegations and said it raised money through a private placement of debentures and temporarily invested some of the proceeds in debentures issued by Kisaan Parivar. SEBI adjudication order

Police Trace 70 Bank Accounts and Order a Forensic Audit

Investigators identified 70 bank accounts linked to the companies and their directors, with about ₹35 lakh in combined balances. They also identified 45 properties for possible attachment, including about 140 acres of farmland, and ordered a forensic audit of both firms. On October 1, the Telangana High Court granted conditional bail to two defendants in the main case. Their lawyers disputed the allegations.

Shares Bazaar’s SEBI Registrations

SEBI cancelled Shares Bazaar’s stockbroker registration in July 2024 after it lost its recognised exchange membership. The firm remains listed separately as a research analyst under registration number INH200010001. In its September 29, 2026 adjudication order, SEBI imposed ₹20 lakh in penalties on the firm and four individuals over breaches of research analyst and intermediary rules. 

Investor Warning

Treat promises of high, fixed returns and capital protection as red flags. Before transferring money, check the firm’s registration category and whether it covers the specific service being offered. If you suspect online financial fraud in India, call 1930 or report it through the National Cyber Crime Reporting Portal.

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