Ahmedabad FMCG Promoter Faces Fraud Charges Over Rs 2.82 Crore Scam
A fast-moving consumer goods promoter in Ahmedabad stands accused of orchestrating a sophisticated financial fraud. The individual allegedly fabricated a story about clearing the UPSC examinations to gain trust before siphoning off approximately Rs 2.82 crore from a technology group.
Complaint Details Elaborate Scheme
CID Crime registered a formal complaint on Friday. The case involves a city-based group operating in telecom and fintech sectors. This group ventured into the FMCG industry in 2022 after meeting individuals presenting themselves as independent researchers.
These researchers claimed to develop consumer products based on ancient ayurveda texts. They allegedly boasted about creating thousands of formulations and filing more than 150 patents. The accused projected a business model with revenue exceeding Rs 120 crore and profits of Rs 30 crore within a single year.
Investment Based on Misleading Information
Laboratory reports showed the products were free from alcohol, lead, and arsenic. Based on these findings, the tech group invested in two FMCG firms. The companies executed share purchase agreements and rebranded under the complainant's name.
Full operational control transferred through management service agreements. The accused received responsibility for sourcing, production, quality control, sales, supply chain management, and financial approvals.
Fraud Discovery Through Internal Audit
The fraud came to light when sales remained disappointingly low despite substantial monthly expenditures. An internal audit revealed monthly expenses reaching Rs 80 lakh while annual sales hovered around only Rs 5 crore.
Further investigation uncovered a troubling procurement pattern. Raw materials moved through a chain of firms allegedly connected to the accused and their family members. Materials worth Rs 83 lakh purchased from a base supplier were routed through intermediary companies.
These same materials were then billed to the complainant companies at Rs 3.65 crore. The difference of approximately Rs 2.82 crore appears to have been siphoned off through this scheme.
Additional Violations Uncovered
Investigators discovered the same product formulations were supplied to another FMCG brand operating in the market. This activity directly violated existing agreements prohibiting such actions.
Documents indicate the competing brand has connections to close relatives of the accused. Promotional videos, overlapping suppliers, and shared financial trails suggest misuse of the complainant's funds and intellectual property.
Further Allegations Surface
The complainant made additional serious allegations. The accused allegedly dismantled the existing sales team and proposed shifting to a franchise model. In December 2024, the individual resigned from the company board.
Another concern involves an industrial plot transferred for company operations. The complainant paid for this property but never received possession or related documentation.
Legal Action Initiated
CID Crime registered a formal case under the Bharatiya Nyaya Sanhita. Charges include cheating, breach of trust, and criminal conspiracy. Investigators have begun a thorough examination of all evidence and financial records.
This case highlights the importance of thorough due diligence in business partnerships. It also demonstrates how fabricated personal narratives can be used to establish false credibility in commercial relationships.
