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Two traders from Mumbai arrested for Rs 5 cr fraud

Duo allegedly fabricated bills to show trade between their firms

Written by Express News Service | New Delhi | Published: June 17, 2013 1:27:36 am

The Economic Offences Wing (EOW) of the Delhi Police has arrested two Mumbai businessmen,both directors of companies dealing in manufacturing of edible oils,for allegedly duping IFCI (Industrial Finance Corporation of India) of Rs 5 crore.

Ashok Kumar Rathi who is the director of Maven Industries Ltd and Vijay B Shethia of Jayesh Oil Trade Pvt Ltd allegedly obtained working capital loan from IFCI through the fraud,police said.

The two allegedly fabricated the travel bills,invoices,receipts and accounts to show fake trade between their companies,Joint Commissioner of Police,EOW,Sandeep Goel said.

The matter was reported after Tapabarata Mohitra,Senior Associate Vice-President of IFCI Ltd,complained about Rathi. Mohitra told police that Rathi had approached IFCI for a loan to finance a project in which Rathi’s company would supply refined soya oil to M/s Jayesh Oil Trade Pvt.

“According to the complainant,IFCI provided financial assistance of Rs 5 crore to Maven Industries Ltd for meeting their working capital requirements. At that time Maven Industries had submitted four bills of purported supply of soya products and refined oil worth Rs 5.90 crore to Jayesh Oil Trade,” Goel said.

“IFCI later discovered that the loan was disbursed against fake bills and false representations by the companies.”

Police contacted transporters whose vehicles the companies had claimed to have used to transport the oil and had presented bills for the same.

“The transporters said the vehicle numbers,receipts and invoices provided by the director of Maven Industries were fake,” police said

The two companies were asked to join the enquiry,but they avoided it. “It was apparent that both the parties colluded to submit forged invoices and receipts,” Goel said.

Police also found that UCO Bank had sealed Rathi’s company for defaulting on some other loan after which he had been on the run. He was finally apprehended from Maharashtra.

Further investigation in the case is on,police said.

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