The BlackRock Scandal: Unraveling the $500 Million Fraud Involving Bankim Brahmbhatt
Its Funny to Imagine that an Indian scammed worlds Biggest Multinational Investment Management Company
Ayush Anand
11/2/20252 min read
One More Addition to India’s Fraud List: The $500 Million BlackRock Scandal
One more addition to India’s growing list of high-profile frauds — this time, it has shaken the global investment community. A massive $500 million scam has emerged, involving an Indian-origin executive and the world’s largest asset manager, BlackRock.
At the center of this controversy is Bankim Brahmbhatt, a telecom services CEO who allegedly built a vast network of shell companies across the United States and other countries. As per a lawsuit filed in August 2025 in the U.S., lenders claim that Brahmbhatt’s firms collectively owe them more than $500 million.
The alleged fraud centers around fake invoices and fabricated accounts receivable, which were used as collateral to obtain huge loans. In reality, the “assets” existed only on paper and had no genuine business activity behind them.
The lending was carried out through HPS Investment Partners, a private credit firm now owned by BlackRock. HPS began lending to Brahmbhatt-linked companies in September 2020, with total exposure climbing from $385 million in 2021 to $430 million in 2023, and finally touching $500 million in 2024.
Among the major lenders involved was BNP Paribas, which reportedly financed nearly half of the total loan amount.
The fraud came to light in July 2025 when an HPS staff member noticed irregularities during a verification check. Several “customer” email addresses used for confirming invoices turned out to be fake or spoofed domains. Deeper investigations revealed that every customer contact used over the past two years was fictitious, with some fraudulent contracts dating back to 2018.
Attempts to contact Brahmbhatt have been unsuccessful. His New York office was found locked and abandoned, and nearby tenants confirmed that no staff had entered the premises in weeks.
According to the lawsuit, Brahmbhatt constructed an elaborate web of non-existent assets, some of which were allegedly moved offshore to India and Mauritius.
This scandal has sent shockwaves across the private credit market, raising fresh questions about transparency, risk assessment, and due diligence within global lending institutions.
