Ahmedabad: A fraud of over Rs 1 crore has come to light in the city wherein funds raised through loans against mutual fund holdings were allegedly embezzled on the pretext of stock market investments. Investors filed a complaint in this regard with Satellite police on Wednesday through a power of attorney. The complaint alleges that the accused, associated with a partnership firm that deals in financial services and travel bookings, convinced victims to invest on promises of annual returns as high as 15% to 20%.The complaint further states that investors were persuaded to take loans against their mutual fund portfolios through an NBFC. In June 2025, a total of Rs 1.34 crore from multiple bank accounts was transferred into the firm’s account for supposed investment in stocks. The accused allegedly assured that the funds would be routed through a reputed brokerage platform and could be withdrawn any time. When the investors sought their money back, the accused allegedly delayed payments giving different excuses. The cheques that the accused had issued as ‘security’ too were dishonoured. Police said the accused shared stock ledger statements via messaging platforms to show that investments had been made. Verification with the brokerage firm revealed that no such accounts or investments existed in the names of the investors and that the documents provided were fabricated. Scrutiny also revealed discrepancies in the partnership firm’s records, including signatures of a person not listed as a registered partner. Investigators said a portion of the amount invested, around Rs 26.49 lakh, was returned, while the remaining Rs 1.07 crore is alleged to have been misappropriated. Satellite police registered a case of cheating, breach of trust and forgery.