Innuvium Energy Alleges ₹25 Million Forex Contracts Fraud by Axis Bank Officials Disguised as "Safe Investment"

Innuvium Energy Pvt. Ltd., a plastic raw material importer in India, has accused Axis Bank officials of defrauding its 76-year-old Director, Mr. Gangasagar Prasad Gupta, by selling unauthorized Forward Forex Contracts worth over ₹25 million under the guise of a “100% risk-free fixed deposit investment plan.”

An FIR was registered at Bhelupur Police Station naming Mr. Sunil Dubey (Assistant Vice President), Ms. Gracy Singh (Relationship Manager), and others for criminal breach of trust, forgery, and violations of the Reserve Bank of India (RBI) and Foreign Exchange Management Act (FEMA) regulations.

According to the company, Axis Bank:

• Booked 13 forward forex contracts without genuine export exposure.
• Fabricated export invoices using Innuvium’s letterhead to justify illegal transactions.
• Placed unauthorized liens on fixed deposits totaling ₹10.1 million.
• Withheld mandatory Mark-to-Market (MTM) reports after early 2023, concealing mounting losses.

The fraud came to light when a suspicious invoice was emailed on October 23, 2023. Gupta suspected that bank officials themselves prepared the forged documents. One contract, booked in Swiss francs on July 10, 2024, matured at a loss on July 8, 2025, with ₹52.25 lakh debited from the company’s account without consent.

“We trusted the bank completely,” said Mr. Gupta. “They told us it was a guaranteed fixed deposit plan. We had no export business in CHF or GBP, yet they made us sign documents we didn’t even understand. I am 76 years old — they exploited my trust and lack of technical knowledge. We demand justice and strict RBI action so that others are not misled like us.”

Innuvium Energy’s complaints have been filed with the Reserve Bank of India (RBI), the Enforcement Directorate (ED), and the Foreign Exchange Department, urging an investigation into Axis Bank’s alleged regulatory breaches.

The company calls on the RBI and the Ministry of Finance to tighten suitability checks and risk-disclosure norms for banks dealing in forex and derivative products.

Unlike typical forex scams involving unregulated platforms or fake websites, this case implicates a trusted banking institution and complex forex products. It underscores the urgent need for senior citizens and small businesses to exercise caution when approached with complex forex products mis-sold as “safe investments.” 

To learn more about forex risks and how to protect yourself, visit BrokersView and Ask a Question.