₹4.84 Crore Scam Linked to Jainam Broking Unearthed in Surat

Surat: The Surat Police have brought to light a major financial fraud amounting to ₹4.84 crore, involving a share trading firm connected with Jainam Broking Limited. The scam has allegedly cheated more than 54 brokers and investors.

The main accused are the owners of Green Wall Enterprise, who were reportedly operating on behalf of Jainam Broking. On Sunday, police arrested Hiren Jadav, while his partner Nimit Shah remains at large.

According to police, the accused stopped investors from trading on the platform and failed to return deposits and other funds, leading to heavy losses. The Detection of Crime Branch (DCB) has registered a case of cheating and criminal conspiracy, later transferring the probe to the Economic Offences Cell (EOC).

The case unearthed when a stockbroker Rutvij Kothari—introduced to Jainam Broking through broker Manisha Patel in September 2024—realized that Green Wall Enterprise’s owners Shah and Jadav were managing his accounts on behalf of Jainam. Kothari began working as an agent in November 2024 and motivated friends and clients to open accounts through Green Wall.

Under the scheme, investors could trade up to ₹50 lakh against a deposit of just ₹5 lakh. They were promised 6–18% interest, which was paid regularly at first. Kothari himself transferred ₹2.53 crore from 25 clients to Jainam’s trading via Green Wall. The fraud was exposed on August 14, 2025, when Kothari’s account was suddenly blocked, halting all trading activity. Shah allegedly went into hiding.

In addition to Kothari’s clients, 29 other investors deposited another ₹2.11 crore with the firm. Sources suggest the total fraud could exceed ₹50 crore, involving investors from Rajkot, Delhi, Mumbai, Surendranagar, and Ahmedabad. Police have urged all affected investors to come forward and assist in the probe.

SEBI Action Against Jainam Broking in 2024

This is not the first controversy surrounding Jainam Broking Limited.

On August 30, 2024, SEBI fined the firm ₹3 lakh for failing to update KYC details for 1,501 clients in the Central KYC Registry (CKYCR), with some records pending for up to seven years. A day earlier, on August 29, 2024, SEBI imposed another ₹6 lakh penalty for violations committed by Jainam’s Authorized Persons (APs), including unauthorized use of designations such as “Wealth Advisor” and “Investment Advisor,” inadequate supervision, failure to maintain proper records of client orders, unauthorized use of trading terminals, and office management irregularities.

The ongoing investigation in Surat has once again raised questions about investor safety and compliance practices in India’s fast-growing brokerage industry.