Mumbai: An FIR has been registered against a prominent Mumbai-based construction company in connection with a massive financial fraud amounting to ₹480 crore.
The Juhu Police have booked six individuals, including the company’s director, under serious sections of the Indian Penal Code. The case has now been handed over to the Economic Offences Wing (EOW) for detailed investigation.
According to the Juhu Police, the complaint was filed by Ruchi Shah, Assistant Vice President at Edelweiss Asset Reconstruction Company Limited. As per the complaint, the accused secured a debenture loan of ₹600 crore for a construction project in Andheri West. However, the entire transaction was allegedly not properly documented in the legal contract.
Further, it is alleged that ₹141 crore was unlawfully transferred to unrelated accounts, and fake utilization certificates were submitted to justify the loan usage. A chartered accountant firm is also accused of preparing a fraudulent audit report in support of the misappropriated funds.
Due to these actions, Edelweiss reportedly suffered a financial loss of ₹480 crore. Based on the complaint, the Juhu Police registered an FIR under IPC Sections 409 (criminal breach of trust), 420 (cheating), 465, 467, 468, and 471 (forgery and use of forged documents). The case has now been transferred to the EOW, which is probing the financial irregularities and tracking the diversion of funds.
