A senior banking professional has lodged a formal complaint with the Gujarat Criminal Investigation Department (CID) Crime, alleging that the partners of an Ahmedabad-based firm secured a cash credit facility of Rs 5 crore by misrepresenting financial records. The complaint, filed on Monday, accuses the firm and its three partners of inflating receivables and stock positions, and subsequently diverting the borrowed funds for personal use.
Details of the Alleged Fraud
The complainant, a senior banker, stated that he was assigned to pursue the matter following an internal vigilance inquiry into the firm's financial transactions and loan accounts. According to the complaint, the corporation obtained the cash credit facility in December 2021 after mortgaging two plots near Kalol in Gandhinagar district. However, repayments soon became irregular, and the account was classified as a non-performing asset (NPA), triggering recovery proceedings.
Forensic Audit Findings
A forensic audit conducted for the period between November 2021 and August 2024 allegedly uncovered several irregularities. The audit revealed that the firm inflated receivables, showed fictitious coal stock, made unsupported claims regarding goods lying at ports, and recorded questionable sales and purchase transactions. These actions were intended to project a stronger financial position and obtain enhanced credit facilities.
Diversion of Funds
Investigators have also been told that substantial sums were diverted for purposes unrelated to business operations. The complaint alleges that transactions amounting to nearly Rs 10 crore were routed towards personal expenditures, including payments linked to the purchase of a high-value residential property in Ahmedabad and transfers to accounts belonging to partners and their family members.
Multiple Loans and Pending Proceedings
The complaint further claims that the firm had availed loans from multiple financial institutions and accumulated liabilities running into several crores of rupees. Recovery proceedings in connection with the outstanding dues are already pending before a debt recovery tribunal.
Investigation Underway
CID Crime officials have initiated an investigation into allegations of cheating, criminal breach of trust, diversion of funds, and financial fraud. Further inquiries are underway to verify the audit findings and trace the funds. The authorities are expected to examine the financial records and statements of the accused parties to build a case.
