Surat Prop Trading Scam ₹150 Cr Fraud Unfolds

The “Prop Trading Scam” that originated in Surat has now become a nationwide topic of discussion. Traders have lost over ₹150 crore by being lured with promises of funded accounts and high leverage. This scam highlights the dangers of unregulated platforms and agents. Police and the Economic Offences Wing (EOW) are investigating, while investors are struggling to recover their money. This blog will explain how the scam unfolded, who was affected, and what lessons traders should learn from it.

Background: How the Surat Prop Trading Scam Started

A “prop trading scam” is a scheme where you’re told you can invest a small amount of capital to gain a large trading limit, make profits, and share in a funded account. However, in reality, this model often operates through unregulated agents and unregistered platforms, where there are no rules or oversight. For example, some “prop firms” claim that the investment will be made with their capital, not yours but investigations reveal that the entire system is based on simulated trading, exorbitant fees, or inconsistent leverage models.

How the Scam Operated: Inside the Prop Funding Trap

• Initially, Green Wall Enterprises (also known as Greenvol Enterprises) introduced this model in Surat, Gujarat, presenting themselves as agents of a reputable broking house. However, this agency arrangement was found to be invalid.
• Money from investors was typically collected not directly through the exchange, but via UPI, digital transfers, and personal accounts.
• Initial complaints registered fraud amounting to approximately ₹4.84 crore, with over 50 brokers and traders filing complaints.
• However, as this network was uncovered, the case was not limited to Surat—it spread to other parts of the country (NCR, Jaipur, Ranchi, Kolhapur), and the estimated total loss could exceed ₹150 crore.
• As complaints increased, it emerged that the firm had presented itself as an agent of a registered broking house, a claim that the broking house itself denied.
• The model was risky because the control of the investment was not entirely in the hands of the trader; the profit withdrawal process was unclear, and when it came time to withdraw money, many traders did not receive their payments.
• According to experts, such structures are particularly risky because they lack regulatory oversight and the safeguards understood by the investor are absent.

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The Timeline : Surat Prop Trading Scam

Year/Date	Title of the event	Description
August 2025	Initiation of complaints	Traders working within the legal system have filed a complaint against Green Wall Enterprises in Gujarat, alleging that their accounts have been blocked and that funded-trading promises have not been fulfilled.
August 2025 (August 14)	Disappearance of the main accused	Nimit Shah and Hiren Jadav, the alleged heads of Green Wall Enterprises, suddenly disappeared, causing fear and confusion among traders.
September 2025	The brokerage firm denied it.	Jainam Broking Ltd clarified that Green Wall Enterprises is not their agent and there was no transactional relationship between them.
2025-November	Loss estimates exceed ₹150 crore	Based on claims from affected traders in various states across the country, the total estimated loss is now reported to be over ₹150 crore.
2025-November	Police investigation and enforcement action	The Gujarat Police and Economic Offences Wing (EOW) are actively investigating this case. The review of irregular agent-model, client-payment channels, and promised funded-trading schemes is ongoing.

The role of the main accused and the companies

Main Firm: Green Wall Enterprise (also known as “Greenvol Enterprises”) : 

This firm operated from Surat, Gujarat, and allegedly promised traders “funded accounts” and high-leverage facilities. The defendants include two key individuals from this firm: Hiren Jadav (previously arrested) and Nimit Shah (still absconding in the case).

Broking Firm Name: Jainam Broking Ltd : 

The Green Wall firm claimed to be operating on behalf of Jainam Broking Ltd. However, Jainam Broking has denied this claim. The extent of the legitimacy of this link-up is still under investigation.

Agent/Sub-broker Network and Investors : 

The firm recruited investors through a network of agents: for example, one agent collected approximately ₹2.53 crore from 25 clients, while another 29 investors deposited approximately ₹2.11 crore.

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Investigation and Regulatory Action

1. FIR and Initial Action : The Economic Offences Wing (EOW) of Surat Police has registered a case against Green Wall Enterprises under sections of fraud, criminal breach of trust, and conspiracy. The main accused, Hiren Jadav, has been arrested, while Nimit Shah is currently absconding.
2. Regulatory Bodies : Jainam Broking Ltd. has clarified that it had no agency or transactional relationship with Green Wall. This is significant because regulators such as the Securities and Exchange Board of India (SEBI) and exchange-related entities are monitoring the agent/AP model, where unregistered intermediaries pose a problem.
3. Direction of Ongoing Investigation : Major proceedings involve scrutinizing bank accounts, digital transfer chains, and off-book transactions. The agent network and the movement of deposits (cash/UPI) are also being tracked. This investigation aims to determine where the funds went, who all were involved, and how to prevent such incidents in the future.
4. What to Expect Next : A series of arrests may follow, and charge sheets will be filed. Stricter guidelines on unauthorized agent networks may be issued by SEBI/broker-member entities. Recovery for affected investors is an uphill battle; the legal and civil recovery process can be lengthy.

Impacted Traders and Industry Reactions

1. Traders’ Situation : Following the Surat Prop Trading Scam, several investors claimed that their trading accounts were closed without prior notice. In many cases, traders neither received their profits nor their initial investment back. The Economic Offences Wing (EOW) has received hundreds of complaints from investors alleging that they were misled and given false promises by agents.
2. Industry Reaction : The broking industry has called this incident a “wake-up call” for investor awareness. Leading brokerage houses have clarified that their authorized agents are only SEBI-registered and are not part of any “funded account” schemes. According to experts, this case demonstrates that unregulated prop trading models can pose a serious threat to investors.
3. Key Takeaways : This incident serves as a lesson for the entire trading community that it is essential to verify the legal status, registration, and funding process of any platform before investing in it. Financial experts believe that this case could be a significant step towards strengthening investor protection and transparency regulations in India.

Why Such Scams Keep Happening in India

1. Rapid Growth in Retail Trading : The number of retail traders in India has increased rapidly in recent years. New investors often fall for offers like “funded accounts” and “high returns” without sufficient information. This haste paves the way for such scams.
2. Social Media Promotion and Influencer Influence : Many fraudulent platforms gain trust through social media and YouTube. Influencer marketing and false promises are used to attract investors, leading to the rapid expansion of cases like the “Surat Prop Trading Scam.”
3. Regulatory Loopholes and Lack of Awareness : Proprietary trading models are not yet directly under SEBI regulation, which allows fraudsters to exploit this loophole. Additionally, a lack of financial awareness among investors and a failure to rely on proper documentation makes these scams even easier to perpetrate.

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Conclusion 

The Surat Prop Trading Scam has once again proven that unregulated trading platforms can pose significant risks to investors. Losses exceeding ₹150 crore in just a few months have raised serious questions about market transparency. This incident serves as a warning to investors to thoroughly verify the legitimacy and SEBI registration of any “funded account” or “prop trading” offer before investing. Awareness is the strongest defense against such financial fraud.

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