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Bombay HC Lets Trader Keep ₹1.75 Crore Earned After Kotak Glitch

The court said the profits reflected the trader’s risk-taking rather than any loss to Kotak.

Overview

  • In 2022, Kotak Securities mistakenly credited nearly ₹40 crore of margin to trader Gajanan Rajguru due to a system error.
  • Rajguru traded within about 20 minutes, first losing ₹54 lakh before earning ₹2.38 crore for a net profit of ₹1.75 crore.
  • Kotak reversed the erroneous credit and sought to recover the profit, but the Bombay High Court rejected the claim as not constituting unjust enrichment.
  • The December 2025 order noted Kotak suffered no loss and that the gains flowed from the trader’s decisions, skill and risk.
  • Kotak has appealed the ruling, with the next hearing scheduled for February 4, 2026, and Rajguru represented by advocates Nitesh V Bhutekar and Aaditya Mahamiya.