The Mumbai Police Economic Offences Wing (EOW) arrested Hemang Shah, 50, director of the Anchor Group, at Delhi Airport on Sunday. He is accused of defrauding his elder brother, Mehul Shah, of Rs 9 crore through deceptive investment schemes.
The fraud centers around the proceeds from the 2007 sale of their family firm, Anchor Electricals, to Panasonic Electricals for Rs2,500 crore. After the sale, the brothers divided the proceeds equally and established over 180 companies, including Great White Global Pvt Ltd, Good Value Financial Pvt Ltd, and Anchor Leasing Pvt Ltd, all operating from Peninsula Business Park in Lower Parel.
Between March 2020 and May 2025, Hemang convinced Mehul that surplus funds in their companies’ accounts earning 5-6% interest could yield 10-12% returns if invested in mutual funds or debentures. Investigations revealed Hemang opened multiple demat accounts in the names of Mehul’s family members and his own, manipulating the investment distribution to his benefit.
According to Anand Rathi’s annual reports, Mehul’s family accounts showed balances of Rs 47.4 crore, while Hemang’s family accounts reflected Rs 181.3 crore, indicating clear discrepancies and financial misconduct.
This case follows an earlier criminal case filed against Anchor Group co-founder Jadavji Lalji Shah and Anchor Leasing Pvt Ltd for allegedly cheating a developer of Rs 51 crore.
