In a significant operation, the Jalandhar Commissionerate of Police has successfully dismantled a gang involved in illegal dabba trading, a form of unregulated securities trading, and arrested five individuals in connection with the scam.
Dabba trading, which operates outside the purview of the Securities and Exchange Board of India (SEBI), involves trading securities without using any recognized stock exchanges. Instead, transactions are internally managed by the dabba operators, circumventing regulatory oversight and tax obligations.
According to Jalandhar Commissioner of Police, Swapan Sharma, the gang used Android package kit (APK) files to install an illegal trading app on clients’ phones, allowing them to buy and sell commodities. However, these transactions were not recorded in official systems, enabling the operators to evade government taxes.
The five arrested individuals have been identified as Jatish Arora, Karan Dogra, Anil Anand, Darpan Seth, and Tarun Bhardwaj, all residents of Jalandhar. Police have also named Gurdial Singh and Mangal in the case, who are still at large.
The bust highlights ongoing efforts by authorities to clamp down on unregulated trading and tax evasion in the financial sector.
