Ahmedabad Textile Trader Faces Cheating Charges Over Rs 73.8 Lakh Fabric Payment Default
The Economic Offences Wing (EOW) of the Ahmedabad Crime Branch has registered a case against a local textile trader accused of defaulting on payments worth over Rs 73.8 lakh for bulk fabric purchases from three wholesale firms in the city. The accused, identified as Harsh Dubey, a resident of Vastral who operates a firm named Om Enterprise, has been booked for cheating and criminal breach of trust following a detailed complaint filed by the affected business owner.
Complaint Details and Alleged Fraudulent Transactions
Giriraj Mohata (23), a resident of Motera who manages his family's textile businesses in the New Cloth Market in Raipur, filed the formal complaint with the Detection of Crime Branch (DCB) police on Tuesday. According to the official complaint documents, the accused first approached Mohata's shop in August 2018, expressing interest in purchasing shirting fabric in substantial quantities.
Dubey allegedly presented himself as working at a textile factory with multiple wholesale clients and provided assurances that all payments would be cleared within a 90-day period. To establish credibility, he reportedly furnished his GST registration details, which appeared legitimate at the time.
Credit-Based Supply and Subsequent Payment Default
Trusting these assurances, Mohata's three family-run textile firms—Motilal Punamchand, Mahalaxmi Trading Company, and Mahalaxmi Textiles—began supplying shirting fabric to the accused on credit between August and October 2018. Police investigation records indicate the accused purchased fabric worth specific amounts from each entity:
- Rs 7.32 lakh from Motilal Punamchand
- Rs 50.41 lakh from Mahalaxmi Trading Company
- Rs 17.05 lakh from Mahalaxmi Textiles
These transactions occurred through multiple invoices over the three-month period. However, according to the complaint, Dubey made only Rs 90,000 in installment payments until December 2019 and failed to clear the remaining outstanding dues totaling Rs 73.88 lakh.
Evasion Tactics and GST Registration Manipulation
When repeatedly approached for payment settlement, the accused allegedly employed various delay tactics and excuses. At one point, he reportedly offered to sell either a bungalow in Lambha or a shop near Narol crossroads to adjust the outstanding amount, but neither proposed transaction materialized despite initial discussions.
The complainant further alleged that Dubey strategically utilized his GST registration to obtain the goods, availed associated tax benefits during the transactions, and then cancelled the GST number in December 2019—shortly after making his final minimal payment. This cancellation reportedly complicated recovery efforts and raised suspicions about premeditated fraudulent intent.
Police Investigation and Legal Proceedings
The Economic Offences Wing has formally registered offences under relevant sections for cheating and criminal breach of trust. Investigators have launched a comprehensive probe into the financial aspects of the case, examining detailed transaction records, invoices, and financial documentation submitted by the complainant.
Police officials confirmed that the investigation is currently focused on verifying the financial records, tracing the movement of goods, and establishing the precise sequence of events that led to the substantial payment default. The case highlights ongoing challenges in the textile trading sector regarding credit transactions and payment security mechanisms.
