CBI chargesheet against 26 linked to private firm for fraud to tune of Rs 9 cr

It was alleged that Roselabs Limited, a private firm in Ahmedabad, its directors, and other “unknown persons and unknown public servants” were involved in a criminal conspiracy and committed cheating and criminal misconduct with the dishonest intention of causing wrongful loss to Bank of Baroda to the tune of Rs.9.24 crores and wrongful gain to themselves by siphoning of the funds disbursed to them and thereby misappropriated the loan amount.” The firm, a public limited company, was said to be involved in the trading and distribution of various products of pharmaceuticals, dyes and chemicals, and textiles.

According to the CBI release, the chargesheet has been filed before a magistrate court for CBI cases, against the firm’s director Pawankumar Agrawal, his son Zameer Agrawal, wife Rosy Agrawal, statutory auditors Sunilkumar Poddar and Anilkumar Agarwal and 21 others.

As per the details enumerated by the bank in its complaint, a forensic audit of the account of the firm revealed several irregularities in 2019.

These included the diversion of funds through related parties namely — M/s Roselabs Health Care Ltd and Roselabs Polymers Ltd — amounting to Rs 5.71 crore.

The factory was found to be locked or closed with no activity reported at the unit and godown and falsification of audited financial statements in connivance with the statutory auditors by continuing to declare the company as a going concern when the entire current assets were lost due to closure of the factory.

The firm’s account had turned into NPA (non-performing asset) due to the stoppage of turnover in the account, and excess cash withdrawn beyond the genuine trade requirements was deemed as “a pointer to active siphoning of funds and committing fraud.”