MUMBAI, May 9 -- A former employee of Motilal Oswal Financial Services Ltd was arrested by the Dadar police on Wednesday for allegedly siphoning off around Rs.1.58 crore from the demat account of a customer by changing the e-mail id, bank account and mobile number linked with the account. According to the police, the arrested accused, 31-year-old Gaurang Mandalia, had joined the financial services firm in May 2021. He was employed in the firm's operations department and worked on quarterly payment settlement till he was terminated following the registration of a first information report (FIR) against him last month. "The accused was produced in court today and has been remanded in police custody for three days," a police officer aware of the matter told HT. The fraud came to light after a senior citizen who had opened a demat account with the firm in 2016 approached them, saying her shares were not visible in her account. While the account was declared dormant in July 2023 owing to lack of activity, the e-mail id, bank account and mobile number associated with the account were modified in August 2024. The financial services firm subsequently conducted an internal probe, which found that Mandalia had likely filled the modification form by forging the customer's signature and activated her demat account. "From August 2024 to January 2025, he transferred shares worth Rs.1.58 crore by encashing them to his bank account," said an officer from Dadar police station, where the FIR against Mandalia was registered based on a complaint by the firm's legal manager. Mandalia has been arrested under sections 318 (4) (cheating), 336 (3) (forgery), 338 (forgery of valuable security, will, etc.) and 340 (2) (using a forged document or electronic record as genuine) of the Bhartiya Nyaya Sanhita, 2023....