Former GS Biotech Director Faces Fraud Charges Over ₹1.67 Crore Land Compensation
The Central Crime Station (CCS) in Hyderabad has formally registered a criminal case against Sanjay Kumar Makhariya, a former director of GS Biotech Ltd, for allegedly siphoning off ₹1.67 crore. This substantial sum was credited to the company's account as compensation for land acquired by the Government of Maharashtra in Nanded district.
Liquidator's Complaint Triggers Police Action
The case was initiated based on a detailed complaint filed by Rajesh Chillale, the liquidator appointed by the National Company Law Tribunal (NCLT) for the corporate debtor, GS Biotech Ltd. According to official documents, the Hyderabad bench of the NCLT had ordered the liquidation of GS Biotech Ltd on September 13, 2024. As part of this insolvency process, the company's board of directors was suspended.
Despite this suspension, the accused, Sanjay Kumar Makhariya, is alleged to have opened a bank account in the company's name and falsely presented himself as an authorized signatory. He reportedly collected the compensation released by the Maharashtra government for 54.2 acres of company land that was acquired in Nanded district on March 24, 2025.
Funds Belonged to Liquidation Estate
In his formal complaint to the police, liquidator Rajesh Chillale emphasized that the ₹1.67 crore payment from the Maharashtra government constituted part of the company's liquidation estate. Under the law, these funds should have been under the exclusive control and management of the appointed liquidator.
"By misrepresenting himself, the former director induced the release of the funds and misappropriated them for personal gain," the complainant alleged in the police report. This act of alleged deception and diversion of corporate assets has now become the focus of a criminal investigation.
Legal Charges and Police Investigation
Following the thorough review of the complaint, the CCS police registered a formal case against Makhariya on February 28. The charges have been filed under specific sections of the Bharatiya Nyaya Sanhita (BNS):
- Section 316(5): Criminal breach of trust by a public servant, or by banker, merchant, or agent.
- Section 318(4): Cheating with intent to dishonestly induce delivery of property.
A senior CCS official, speaking on condition of anonymity, confirmed that "the case is under active investigation. We are meticulously verifying all the details and evidence provided by the complainant to establish the facts and proceed accordingly."
This incident highlights the critical importance of proper oversight during corporate insolvency proceedings and the legal mechanisms in place to protect assets meant for creditors and stakeholders. The investigation continues as authorities work to trace the misappropriated funds and ensure accountability.
