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MUMBAI: The Economic Offences Wing of Mumbai police on Sunday arrested Hemang Jadavji Shah, one of the owners of the Anchor Group of Companies, on charges of defrauding Rs 67 crores from his elder brother Mehul Shah. This was done under the pretext of shared investment through the company’s accounts and demat portfolios. Last year Ashwin Sheth of the Ashwin Sheth group lodged an FIR against the directors of Anchor Leasing Pvt.Ltd. for duping him of Rs 51 crores.Hemang Shah, 48, was arrested at Delhi Airport based on the Look Out Circular (LOC) issued by the Mumbai police. Officials said that the immigration officials alerted them and a team reached Delhi airport and took Hemang’s custody. Hemang was produced before a court and was remanded to police custody. Hemang’s elder brother, Mehul Shah, a key figure behind the legacy of Anchor Electrical Pvt. Ltd. — lodged an FIR with the Malabar Hill police, alleging a massive breach of trust by his brother Hemang.Anchor Electrical Pvt. Ltd., founded in 1963 by their father Jadavji Lalji Shah and uncle Damji Shah, was sold to Panasonic Electric Works Co. Ltd. in 2007 for Rs 2,500 crore. The proceeds were equally divided between the founding families and subsequently invested in a web of over 180 companies, with operations headquartered at Peninsula Business Park, Lower Parel.The Shah brothers, alongside their father, initially served as directors in multiple firms such as Great White Global Pvt. Ltd. and Anchor Leasing Pvt. Ltd. However, in 2022, the senior Shah resigned, leaving Mehul and Hemang as equal directors and shareholders.According to Mehul, in 2020, Hemang proposed investing the companies’ surplus funds in mutual funds, debentures, and equity via Anand Rathi Share and Stock Broker Ltd., claiming it would yield higher returns than conventional bank interest. On this premise, Hemang opened a series of demat accounts: nine under Mehul and his family’s names, eight under his own family’s, and one corporate account under Great White Global Pvt. Ltd.Mehul, trusting his brother’s management, claims he allowed Hemang to oversee the investments. However, in July 2024, an emailed report from Anand Rathi revealed discrepancies in the demat account balances. Mehul’s family account held only Rs 47.41 crore, while Hemang’s family account stood at Rs 181.29 crore, prompting concerns of unequal investment distribution.The matter escalated when, at the instruction of their father, a Memorandum of Understanding (MOU) was drawn up on August 15, 2024, in the presence of family members. It outlined a division of the investment corpus: 40% each to Mehul and Hemang, and the remainder split among their parents and sister, Hina Desai.However, when Mehul attempted to liquidate his share for a flat purchase in Prabhadevi, Hemang issued a cheque for Rs 67 crore dated September 5, 2024. The cheque was returned by the bank with the notation “payment stopped by drawer.” Allegedly, shortly after the cheque was cancelled, Hemang transferred Rs 44 crore overseas for personal benefit.Further, Hemang is said to have instructed Anand Rathi to freeze activity in the corporate demat account, effectively blocking Mehul’s access to the funds.