Vishal Fate, Main Accused in the Rs20 Crore Barshi Stock Market Scam, Sent to 10 Days Police Custody
Solapur and its neighbouring districts in Maharashtra have been rocked by the Barshi stock market scam, where Vishal Fate (Phate) duped hundreds of people of Rs20 crore by claiming to give them high returns through the stock market and allegedly through algorithm trading. Fate, the mastermind behind the scam, surrendered before Solapur police and has been remanded to 10 days police custody by a sessions court in Barshi. His father Ambadas, a retired professor from a Barshi college, and brother Vaibhav are already behind bars, while his mother Alka and wife Radhika are still absconding. 
 
Interestingly, just two months ago, Fate was felicited by Union minister Piyush Goyal during the ZEE Rise Startup to Unicorn 2021. He had also appeared on a few Marathi news channel as an expert in stock market investment.   
 
This is a classic case of greed overpowering all other elements, including blind faith, where prominent citizens, including media persons, doctors and professionals from in and around Barshi town of Solapur district in Maharashtra, ‘invested’ crores of rupees with Vishal Fate. Media reports claim that Fate was investing money in the stock market through algo trading and thus gave extraordinary returns to his ‘investors’.
 
However, Himmat Jadhav, additional superintendent of police of Solapur, told Moneylife that Fate was not doing any algo trading per se. “He was in grey marketing of stocks and, through some brokers and sub-brokers, used to invest money in listed and unlisted companies. He was coding some algo program and setting indicator points for specific companies for buying and selling.” A grey market is an unofficial market for financial securities. While it is not illegal, the unofficial status of the grey market increases its risk.
 
 
“Fate was also involved in re-investment of the money he received from people in some schemes, which, he claims, failed to return his money in time and hence, he could not repay money to his investors. Since 2019, many people have trusted him with their money. They deposited funds in his bank accounts or paid him in cash without obtaining any promissory note or agreement from him,” Mr Jadhav says.
 
According to the additional superintendent of police, 81 people have lodged complaints against Mr Fate, and the amount involved is nearly Rs19 crore. He says, “Our preliminary probe shows that Fate had not given any commitment on good returns on investment to his investors. They simply trusted and gave him Rs10 to Rs15 lakh to get good returns. Greed is the only reason for such type of cases.”
 
Before surrendering, Mr Fate uploaded a video on YouTube claiming that he had no intention of cheating anyone. “I had no intention to abscond. Else I would have withdrawn all money from my bank account. Rs2 crore in my account was withdrawn illegally, and I will take legal action against these people. I was cheated, and even then, I tried to make some adjustments to repay the money. Deepak Ambare owes Rs2 to Rs3 crore to me. I was genuinely trying to give a return of Rs6 crore on an investment of Rs10 lakh. But I met with an accident and could not recover from it. I had given a return of 8% to 9% to all investors. For the past three months, I have not taken a single penny from any investor for investment,” he says.  
 
 
Media reports from Barshi say Mr Fate had developed a mobile app for his firm, Vishalka Consultant Services. Through the app, he used to share tips with his investors. He used to show inflated profit figures and paid the money to some of his early investors. However, he was not doing any stock trading, a report from Lokmat says
 
A few years ago, Mr Fate had opened a cybercafe on College Road in Barshi. He watched the share price movement during his free time and slowly started investing money in the stock market. When he started earning good money from his investment, he handed over the cybercafe to his brother and started his firm. He set up three firms, Alka Share Services, Vishalka Consultant Services Pvt Ltd and Foxtrading Solutions Company. 
 
The complainant in this case, Mr Ambare went to the cybercafe run by Fate in 2019 for filling out a form for the crop insurance scheme. While chatting, Mr Fate told him how much money he earns by investing in the stock market. “I gave Rs70,000 to Fate for investment on which I received Rs30,000 profit within few days and then invested more money,” Mr Ambare stated in his first information report (FIR). 
 
Mr Jadhav, the additional superintendent of police of Solapur, says, “Most of the complainants, in this case, were lured by hefty returns they had received on the initial investment. Soon greed took over, and they re-invested all the money. We are probing the matter and are considering all aspects involved in this case.”
Comments
saharaaj
4 months ago
parties would be rushing to offfer him high party posts and ticket in election
Free Helpline
Legal Credit
Feedback