A prominent CEO from Mumbai's film production industry has taken legal action against a former employee for a significant financial betrayal. The executive has filed a formal police complaint alleging that his ex-accountant misappropriated a staggering sum of Rs 65.8 lakh from his personal funds, which were intended for GST payments. The Khar police have registered a First Information Report (FIR) and are conducting a detailed investigation into the matter.
The Deception Unfolds Over Years
According to the details outlined in the FIR, the accused individual was entrusted with a position of financial responsibility. His duties included handling Goods and Services Tax (GST) payments for his colleagues. Given this arrangement, the CEO also began relying on him to manage his personal GST liabilities starting from 2017. The CEO would regularly transfer the required amounts to the accountant's bank account via NEFT for this specific purpose.
The arrangement continued until 2021, when the accountant resigned from his position. The issue remained dormant until 2024, when the company's Chief Financial Officer (CFO) reminded the CEO about pending GST payments. This prompted the complainant to follow up with his former employee. The accused, however, provided only vague and evasive answers, raising the CEO's suspicions.
Confrontation and Confession
Alarmed by the inconsistent responses, the CEO demanded the accountant hand over the login credentials for the GST portal. Upon accessing the portal and scrutinizing the records, a shocking discrepancy was revealed. The audit showed that between 2019 and 2024, only Rs 9.75 lakh had actually been paid towards the CEO's GST. This was in stark contrast to the Rs 56 lakh the CEO had transferred to the accused for this very purpose.
The shortfall amounted to a massive Rs 46.2 lakh that had simply vanished. The CEO immediately summoned the former accountant to his office for a confrontation in the presence of the CFO. Faced with the irrefutable evidence, the accused reportedly broke down and confessed. He admitted to diverting the funds for his own personal use and even put his confession in writing, signing a statement to that effect.
Failed Repayment and Police Action
In a partial attempt at restitution, the accused returned Rs 2 lakh to the CEO in October 2024. However, no further payments were made afterward. With the total dues, when calculated with accrued interest and penalties, ballooning to Rs 65.8 lakh, the CEO felt he had no other recourse. He subsequently approached the Khar police station and lodged an official complaint, leading to the registration of the FIR.
This case highlights critical vulnerabilities in financial delegation and the importance of rigorous auditing, even with trusted long-term employees. The Mumbai police are now probing the details of the transaction trail and the exact utilization of the misappropriated funds.
