Nagpur: The sharp rise and sudden crash in silver prices over the past few months has shaken bullion markets across India, but the impact has been particularly severe in Nagpur. What initially appeared to be routine market volatility has now revealed a far more troubling reality-an extensive illegal dabba trading and speculative betting network operating from the city, causing massive financial losses to traders, businessmen, and investors.
Sources indicate that the abnormal movement in silver prices was not driven solely by industrial demand or global market trends. Instead, unregulated dabba trading, operating parallel to formal exchanges, played a decisive role in manipulating prices. Nagpur has now emerged as one of the key hubs of this underground system.
Crores Lost as Speculation Turns Fatal for Businesses
Among the most striking cases is that of a well-known sweets and restaurant operator from East Nagpur who reportedly lost nearly ₹26 crore in silver-related dabba trades. The losses were so severe that the businessman was forced to give up his prime commercial property located on a main road. The building is now under another party’s control, and he continues to operate his own establishment by paying monthly rent.
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Similar stories have surfaced from Itwari, Shankar Nagar, Chandrapur, and Jaripatka, where several traders suffered crippling losses after being drawn into the promise of “easy money” through illegal silver speculation.
Nagpur Becomes a Dabba Trading Hub
Once known primarily as an industrial, educational, and commercial center, Nagpur is now increasingly being identified by enforcement agencies and market observers as a major node in the illegal dabba trading network. From here, operations allegedly extend across Vidarbha and into neighboring states such as Madhya Pradesh, Chhattisgarh, and Telangana.
According to local sources, several high-profile bookies are believed to be operating from overseas locations, controlling transactions through mobile apps, encrypted messaging platforms, and fake trading IDs. The system is reportedly so well-organized that retail participants often mistake it for legitimate trading activity.
Silver Price Volatility Exposes the Network
Over the last 5–6 months, silver prices experienced extreme volatility-rising from around ₹1 lakh per kilogram to as high as ₹4.2 lakh at one point, before crashing to approximately ₹2.39 lakh per kilogram by mid-February.
This sharp fluctuation devastated many bullion traders who relied on unofficial “dabba rates” instead of regulated MCX prices. Traders monitoring official exchange screens during the day reportedly entered illegal positions at night, only to find themselves unable to recover once prices reversed.
Heavy Losses Across the Bullion and Trading Community
- A prominent jewellery showroom owner operating in Itwari, Shankar Nagar, and Chandrapur is said to have lost around ₹11 crore in silver trades.
- A 32-year-old trader from East Nagpur, reportedly close to a major dabba operator, exited the market after suffering losses running into crores.
- The son of a well-known saree merchant from Jaripatka allegedly lost approximately ₹9 crore, forcing partial repayments to bookies based in Mumbai.
Market insiders note that these cases represent only a fraction of the actual damage, as many affected individuals choose not to report losses due to fear of reputational damage.
The ‘Easy Money’ Illusion and Regulatory Concerns
Experts warn that dabba trading thrives on the illusion of quick profits. Initial gains often push participants to increase exposure, while attempts to recover losses lead them deeper into debt. The absence of regulation, guaranteed settlement, or legal protection makes recovery nearly impossible once the market turns.
The situation has raised serious questions about regulatory oversight. Observers are now asking whether surveillance mechanisms and financial intelligence systems are equipped to track such large-scale illegal activity-or whether the roots of the dabba network have grown too deep for timely intervention.
Holding Capacity: The Line Between Survival and Collapse
Industry observers point out that one common factor among those who collapsed financially was lack of holding capacity-the ability to absorb losses without panic. Ironically, even the largest dabba operator in the Vidarbha region is believed to be operating at a cumulative loss of nearly ₹800 crore, after once facing losses exceeding ₹2,200 crore. However, substantial financial backing allowed recovery over time.
Smaller traders and businessmen, lacking such reserves, were unable to survive similar market shocks.
The unfolding situation in Nagpur underscores a critical warning: silver speculation driven by illegal dabba trading is no longer just a market risk-it has become a systemic threat to businesses, families, and economic stability.
