A major financial fraud has shaken the peanut trading community in Junagadh, Gujarat, with losses estimated at over Rs 52 lakh. The case came to light after a local trader filed a formal police complaint, alleging systematic cheating by the manager of a Valsad-based company.
The Complaint That Uncovered the Scam
The Junagadh Taluka police station registered a case based on a complaint filed by Sanjay Savaliya, a 40-year-old peanut trader from Joshi Para in Junagadh. Savaliya, who has been in the peanut trade for a decade and runs a processing unit in the GIDC area, stated he had been doing business with Madhusudan Enterprise for about a year.
Initially, transactions were smooth, with payments arriving promptly after the supply of peanuts. However, the situation changed dramatically in early October 2025. Between October 1 and October 7, 2025, Savaliya's firm supplied peanuts worth Rs 7.80 lakh to Vadodara on behalf of Madhusudan Enterprise. Despite repeated follow-ups, the payment was not received even a week after delivery.
False Promises and a Wider Network of Victims
When Savaliya contacted the firm's manager, Kishan Savsani, about the pending amount, he was given assurances. The manager promised that the payment would be cleared after the Diwali festival. However, the money never arrived.
The scale of the alleged fraud became apparent when Savaliya discussed his ordeal with the local traders' association. To his shock, he discovered that 13 other peanut traders from Junagadh had faced similar issues with the same manager. The collective financial damage is substantial, with the total estimated fraud amount reaching Rs 52.83 lakh.
Legal Action and Ongoing Investigation
The police have taken the matter seriously and have registered a formal case. The complaint has been filed under Section 316(5) of the Bharatiya Nyaya Sanhita (BNS), which deals with cheating and fraud. This legal step marks the beginning of an investigation into the activities of the Valsad firm's manager and the outstanding dues to multiple Junagadh-based traders.
This incident highlights the vulnerabilities faced by small and medium business owners in commodity trading, especially when dealing with out-of-city firms. It has caused significant distress within Junagadh's peanut trading community, which is now seeking justice and recovery of their hard-earned money.
