Mumbai: Top city stock trader under scanner after 88 kg gold haul

Mumbai-based share trader Mahendra Shah and his son Megh Shah are absconding after a raid was conducted at their rented flat in Paldi, Ahmedabad, where the Anti-Terrorism Squad (ATS) and Directorate of Revenue Intelligence (DRI) seized around 88 kg of gold bars, 19.66 kg of studded gold jewellery and Rs 1.37 crore in cash. According to sources, DRI teams also visited Mumbai and seized the Shahs’ luxurious 4BHK bungalow, Madhuban, at Lokhandwala in Andheri West. House help and caretakers are worried about their salaries and have been visiting the bungalow for the past two days.

Gold bars seized from Mahendra and Megh Shah’s rented flat

Sources also revealed that the Shahs, who have offices abroad, claim to have bought the seized gold using their earnings from the share market. However, this claim does not align with the findings of the investigating agencies. The agencies have also learned that the Shahs had been frequently travelling abroad. Considering the large seizure of gold with foreign markings, the agencies suspect that the Shahs may be running a large-scale gold smuggling racket, which is currently under investigation. “The initial input was received by us, and since a large quantity of gold was involved, the case was handed over to the DRI,” said Sunil Joshi, DIG, Gujarat ATS.

Sources in the Gujarat ATS said that the accused in the case are share market brokers and have their bases both in Ahmedabad and Mumbai and further investigation on their network is being conducted by the DRI.  According to officials, Mahendra has a business in Dubai. An employee of the family, Pooja, who has been working in the Shah household for the past few months, told mid-day on Friday, “I’ve been taking care of Megh Shah’s three-month-old son. The family has installed 12 to 15 CCTV cameras inside the house.”

The sealed entrance of Madhuban bungalow, the Shahs’ residence, at Lokhandwala West on March 21. Pic/Nimesh Dave

“My salary is stuck now. A day before the incident, I was told my salary would be paid via UPI. But, I didn’t receive it. For the past two days, I’ve been visiting the house and trying to contact the family but their phones are switched off,” she added.

The raid

The DRI team searched the flat in Paldi, Ahmedabad on March 17 suspecting a smuggling operation. The input was received from the Gujarat ATS. In the search, they recovered 87.92 kilograms of gold bars, valued at around Rs 80 crore. Most of the gold bars bear foreign markings, indicating that these were smuggled into India. They also found 11 luxury watches, including a Patek Philippe one studded with diamonds, a Jacob & Co timepiece, and a Franck Muller watch; and jewellery weighing 19.66 kilogrammes, studded with diamonds and other precious or semi-precious stones.