Ahmedabad businessman alleges ₹5-crore investment fraud by financial services firm

The Ahmedabad City Police have registered a case of alleged cheating and criminal breach of trust after a city-based businessman accused a financial services firm and its partners of duping him and his family members of more than ₹5.3 crore on the pretext of investing the money in the stock market.

According to the complaint lodged at the Satellite Police Station, Mahendra Devchandbhai Patel (66), a resident of Ambawadi and owner of a machinery manufacturing unit operating under the name Varun Engineers at Vatva GIDC, alleged that he was persuaded to invest large sums in a firm named M P Fincorp Services after being promised high returns.

Police said Patel had known Mihir Jitendrabhai Parikh, one of the partners of the firm, through a local Lions Club for nearly five years. Parikh allegedly told Patel that his company, part of the M P Group, facilitated investments in the stock market and mutual funds through brokerage firm Motilal Oswal Financial Services.

According to the complaint, Parikh claimed that customers’ money would be invested in shares through demat accounts opened in their names and that investors could withdraw their funds within a week whenever required.

Trusting these assurances, Patel and his family members allegedly transferred a total of ₹5.30 crore between December 2023 and January 2024 through RTGS from different bank accounts to the company’s ICICI Bank account. The firm’s office is located at Shivalik Shilp near ISKCON Crossroads on S G Highway.

Patel further alleged that Parikh installed a private mobile application named “M.P. Financial Services” on his phone, through which he could track purported investments and returns. The app reportedly showed details of shares purchased in various companies and indicated that the investment had grown to nearly ₹6.77 crore by mid-2025.

However, when Patel sought to withdraw the money in June 2025 citing business requirements, the accused allegedly began delaying payments. After repeated requests, Patel claimed he received ₹2.72 crore in instalments, while the remaining amount was withheld.

The complainant said that Parikh later issued two undated cheques and also executed a memorandum in July 2025 promising to settle the dues within 15 days or transfer ownership of certain properties as security. Patel alleged that neither the money nor the property documents were handed over subsequently.

Suspicious about the transactions, Patel approached the Ambawadi office of Motilal Oswal Financial Services and produced the ledger statements provided by the firm. Officials there allegedly informed him that no demat accounts had been opened in the names of Patel or his family members and that the statements were fabricated. Verification on the website of National Securities Depository Limited also revealed that no share transactions had been carried out in their names, the complaint stated.

Patel alleged that the accused used forged ledger statements and the company’s application to falsely show stock market investments while diverting the funds for personal use.

According to the complaint, although ₹2.72 crore was returned, the remaining ₹2.57 crore of the principal amount and the promised returns together totalling around ₹4.04 crore remain unpaid.

The accused named in the FIR include Mihir Jitendrabhai Parikh, his wife Dhara Parikh, his mother Geetaben Parikh and associate Hemrajsinh Vikramsinh Rana, who were partners in the firm.

Police officials said the complaint was registered after approval from the office of the Commissioner of Police, Ahmedabad City. The case has been taken up for investigation by an officer of the Satellite police station.

Investigators said they are examining financial records, bank transactions and documents submitted by the complainant to ascertain the extent of the alleged fraud and whether other investors may also have been duped.