Businessmen arrested for fraud

Two businessmen from Maharashtra were arrested for allegedly duping Industrial Finance Corporation of India of Rs 5 crores by fraudulently obtaining working capital loan.

The accused have been identified as Ashok Kumar Rathi (51), a resident of Nagpur and director of Maven Industries Limited and Vijay B Shethia (47), a resident of Mumbai and director of Jayesh Oil Trade Private Limited. “They were arrested from Maharashtra and brought to the national capital this week,” said a senior police officer.

They were arrested following an investigation into a case registered on August 30 last by Tapabarata Mohitra, a senior associate vice-president of IFCI Ltd, with economic offences wing of Delhi Police. 

Mohitra, in the compliant, stated that Maven Industries Ltd had approached the IFCI for loan. Rathi told the bank that he had to supply soya refined oil to Jayesh Oil Trade Pvt Ltd and needed capital. The corporation provided a loan of Rs 5 crores.  However, the company submitted forged bills of the purported supply of soya products and soya refined oil worth Rs 5.90 crores to Jayesh Oil Trade Pvt Ltd. A few months after the corporation dispersed the loan, they found that the invoices and bills submitted by Rathi were fake and false representations by both companies.

During probe, transporters said that the various vehicle numbers, receipts and invoices provided by the company were found to be all false and fake. It was found that the directors of the two firms falsified accounts with intent to defraud IFCI by making false entries and submitting them to the corporation for obtaining the loan.

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