Hyderabad: The AP CID has launched a preliminary probe into the alleged multi-crore ‘dabba trading’ fraud in commodities future trading. The fraud allegedly involving thousands of crores took place in Tenali and Hyderabad. A cyber security expert named N. Ravi Sasank, who is also the complainant, claims to have stumbled upon a duplicate server with MCX traffic coming from Nether-lands. He later lodged the complaint with CID.
The Tenali based Sri Arihant Commodities is accused of trading on a virtual machine outside the recognised platform MCX (Multi Commodities Exchange) by reverse engineering the software. The complainant alleged that due to dabba trading the government suffered huge tax losses as trading is done in cash bypassing banks. He alleged clients also lost crores as they never got price appreciation as the illegal platform has only a few thousand traders. They also lost their margin money. Mr Kailash Kumar, the owner of Sri Arihanth, denied the allegations. “There is no cheating by me or my company. Our business is legal. Our rivals are trying to throw mud on us. Anyone can verify our systems.”
Mr Ravi Sasank said, “MCX is the legal platform for future trading in commodities. Sri Arihant Commodities took MCX membership by paying around a crore. Then it appointed around 65 sub-brokers in united AP. Clients do trading on MCX. However, when we were scanning outside web traffic we found MCX trading data coming from Netherlands. Trading is permitted only in India, so we probed it.”
He added, “We found two IP addresses simultaneously transmitting data and one was a duplicate server. We suspect they have done reverse engineering, made a software duplicating MCX, and kept the Net connection in Hyderabad. The clients who lost money are not complaining as it is black money. If they file complaints they have to show Income Tax accounts.”
