In a significant corporate governance scandal, leading sanitaryware manufacturer Kajaria Bathware has taken stringent action against its Chief Financial Officer, Dilip Kumar Maliwal, for an alleged massive financial fraud. The company has terminated his services and filed a formal police complaint after investigations pointed to embezzlement and siphoning of funds amounting to a staggering ₹20 crore.
Unearthing a Two-Year Fraud
The company, in its official filing to the stock exchanges on 22 December 2025, revealed that its internal investigations uncovered the fraudulent activities. The misconduct allegedly occurred over the past two years within Kerovit Global Private Limited, a wholly-owned subsidiary of Kajaria Bathware Private Limited (KBPL). According to the filing, Maliwal is accused of committing fraud through the embezzlement and systematic siphoning of the subsidiary's funds.
Immediate Legal and Corporate Action
Acting swiftly upon discovery, Kajaria Bathware lodged a formal complaint with the authorities on 18 December 2025. The complaint was filed with two key police bodies: the Deputy Commissioner of Police, Economic Offence Wing of the Delhi Police, and the Station House Officer of Police Station Badarpur in New Delhi. The company stated that this legal step was taken "immediately on unearthing the said fraud," which is currently under active police investigation.
Parallel to the legal recourse, the company has terminated the services of CFO Dilip Kumar Maliwal. This decisive move severs his official association with the company with immediate effect.
Strengthening Safeguards for the Future
Kajaria Bathware has assured stakeholders that the matter does not end with the termination and police complaint. The company plans to escalate the issue internally to ensure such breaches are prevented in the future. The matter "will be put up before the appropriate Committee of the Board of Directors".
The board committee's mandate will be to review the incident thoroughly and recommend further steps. The primary objective is to implement robust safeguards and strengthen internal financial controls to avoid any recurrence of similar incidents. This step is crucial for restoring investor confidence and upholding corporate integrity.
As this is a developing story, more updates are expected as the police investigation progresses and the board committee deliberates on additional corrective measures.
