Ahmedabad partnership firm faces ₹5cr loan fraud case

Ahmedabad: A senior banking professional has filed a complaint with Gujarat CID Crime alleging that partners of an Ahmedabad firm secured a Rs 5 crore cash credit facility by misrepresenting financial records, inflating receivables and stock positions, and subsequently diverted funds for personal use.

The complaint, lodged on Monday, names the corporation and its three partners. The complainant stated that he was assigned to pursue the matter following an internal vigilance inquiry into the firm’s financial transactions and loan accounts.

The corporation allegedly obtained a cash-credit facility in Dec 2021 after mortgaging two plots near Kalol in Gandhinagar district. Repayments soon became irregular and the account was classified as a non-performing asset (NPA), triggering recovery proceedings.

A forensic audit conducted for the period between Nov 2021 and Aug 2024 allegedly uncovered several irregularities. The complaint alleges that the firm inflated receivables, showed fictitious coal stock, made unsupported claims regarding goods lying at ports, and recorded questionable sales and purchase transactions to project a stronger financial position and obtain enhanced credit facilities.

Investigators have also been told that substantial sums were diverted for purposes unrelated to business operations. The complaint alleges that transactions amounting to nearly Rs 10 crore were routed towards personal expenditures, including payments linked to the purchase of a high-value residential property in Ahmedabad and transfers to accounts belonging to partners and their family members.

The complaint further claims that the firm had availed loans from multiple financial institutions and accumulated liabilities running into several crores of rupees. Recovery proceedings in connection with the outstanding dues are already pending before a debt recovery tribunal.

CID Crime officials have initiated an investigation into allegations of cheating, criminal breach of trust, diversion of funds and financial fraud. Further inquiries are underway to verify the audit findings and trace the funds.