How a 22-year-old defrauded investors to the tune of Rs 2,200 crore

A high-profile influencer on social media, Bishal’s lavish lifestyle was once the talk of the town, luring people to invest in his stock firm without doubting his credentials.

Bishal Phukan, all of 22 years and currently behind bars, has been charged with swindling investors in Assam and Arunachal Pradesh to the tune of around Rs 2,200 crore in the garb of guaranteed returns.

A high-profile influencer on social media, Bishal’s lavish lifestyle was once the talk of the town, luring people to invest in his stock firm without doubting his credentials.

The Rise of Bishal Phukan

At age 18, Bishal Phukan stepped into the world of stock market for the first time, after graduating in commerce from Salt Brook Academy, Dibrugarh. Though Bishal had a basic understanding of business and finance, he picked up the nuance of making quick money.

Bishal used his easy demeanour to lure investors with a promise of 30% return in 60 days, which clicked, and funds started pouring in. As promised, Bishal did deliver the assured returns to investors on time, but only for a while.

With his new-found wealth, Bishal soon floated four companies in the business of pharmaceuticals, video production and construction. He invested in production of web series, music videos and in the Assamese film business, along with purchasing land and apartments in Guwahati and Dibrugarh.

Bishal moved in swanky cars and frequently travelled to the Middle East. Skydiving in Dubai and hosting large, open-air parties came easily for someone who rose from humble beginnings and had lost his father just a couple of years ago.

Bishal Phukan has been charged with defrauding investors in Assam and Arunachal Pradesh to the tune of around Rs 2,200 crore in the garb of guaranteed returns.

He also funded a destination wedding for his sister in Udaipur, Rajasthan, and paid for her extravagant Dubai trip with hotel stay and more, hiring rooms worth 12 lakh.

What Went Wrong? Another Con Game

All was fine until another pan-India stock fraud was unearthed, and people associated with an investment company called DB Stock Broking were arrested for allegedly defrauding thousands of investors to the tune of nearly Rs 7,000 crore. As many as 23,000 investors filed police complaints against DB Stock Broking once returns became irregular. It emerged that people associated with the company had offices in Guwahati, Nalbari, Rangia, Hyderabad, Bengaluru and Mumbai.

Dipankar Barman, the alleged mastermind behind this scam, is still at large and reported to be in Australia, though there have been arrests of people who have had connections with him. The ire of some investors has even led to an assault on Barman's father.

DB Stocks allegedly used to invest client's money through a marquee online trading platform. The platform has distanced itself from DB Stock Broking scam, stating that Dipankar Burman’s company was not on their list of associates.

Circling Back to Bishal’s Trading Game

Investigation in this scam pointed the needle of suspicion towards Bishal Phukhan and his company, which had been receiving money through notary, an unlawful activity as per capital market regulator SEBI. As the noose tightened, the young trader responded with a statement on his Facebook account, and said, “I have returned all the money to the persons with whom I have entered. Under the Indian law, taking money by way of valid agreement under the Indian contract Act is no offence. Investing the money in buying stocks using my demat account is no offence under the law. Furthermore, I assure every person from whom via agreement I received money in my bank accounts that their money is safe and would be returned, if at all they want it back within discussed period as per agreement.”

On September 2, Dibrugarh Police investigated Phukan at his residence for over four hours, and later arrested him along with manager, Biplab, under a non-bailable offense. A security personnel from Bishal’s apartment too has been arrested, and Guwahati police is on the lookout for Bishal’s sister Sumi Bora, a choreographer by profession, who had managed to spend several hundred times more than her disclosed income. Dirhams and high-end phones were recovered during the search on Bishal Phukan and cousin Sumi Bora’s residences, along with what is being described by police as incriminating documents.

Taking cognizance of the massive fraud, Assam Chief Minister Himanta Biswa Sarma has ordered state police to initiate a campaign against stock trading fraud and assured to investigate complaints.