Former Accounts Employee Arrested in Mumbai for Rs 8.6 Crore Embezzlement Scam
In a significant financial fraud case, the Samta Nagar Police in Mumbai have arrested a former employee of a steel pipe company for allegedly misappropriating funds amounting to a staggering Rs 8.6 crore. The accused, who worked in the accounts department, had resigned from his position in May 2022, but his illicit activities continued to impact the company long after his departure.
Audit Uncovers Massive Financial Irregularities
The fraud came to light in October 2025 when the company, which had been experiencing financial losses, initiated a comprehensive accounts audit. During this detailed examination, auditors discovered suspicious transactions where substantial sums of money were transferred out of the company's bank accounts to various external accounts. Shockingly, some of these beneficiary accounts were traced back to the former accounts employee, raising immediate red flags about his involvement.
Sophisticated Method of Fund Diversion
Investigations revealed that the accused exploited his prior employment to gain unauthorized access to the company's financial systems. He retained the login credentials from his time in the accounts department and went a step further by registering his personal mobile number against the company's account. This cunning move allowed him to receive all one-time passwords (OTPs) required for authorizing transactions, effectively bypassing security protocols.
Between 2023 and 2025, the former employee systematically transferred company funds to multiple accounts, including his own, his wife's, and those of a few other individuals. When summoned for an inquiry by the company, he reportedly admitted to these unauthorized transfers, confessing to the elaborate scheme he had orchestrated.
Lavish Spending and Partial Repayment
With the embezzled funds, the accused indulged in significant personal expenditures, most notably purchasing properties in Rajasthan. However, after the fraud was uncovered, he took steps to mitigate the damage by transferring these properties back to the company and repaying Rs 17.9 lakh. Despite this partial restitution, the financial loss remained substantial, prompting the company to lodge a formal police complaint in December 2025.
The arrest underscores the vulnerabilities in corporate financial controls and highlights the need for stringent security measures, especially in handling sensitive login information and transaction authorizations. This case serves as a cautionary tale for businesses to regularly audit their accounts and update security protocols to prevent such insider threats.
