Mumbai Police have registered a case against three individuals, including a former director of a software manufacturing firm, for allegedly cheating the company of nearly ₹20 crore by selling its patented software product to another organisation. The case has now been transferred to the Economic Offences Wing (EOW) for further investigation.
The Complaint
The complainant, Joe Pious Jude Miranda, is the director of a Mumbai-based IT firm engaged in data engineering, cloud solutions, IoT consulting, automation, artificial intelligence (AI), API integration, and mobile app development. The company also partners with government agencies and public sector units to drive digital transformation and process modernization.
According to Miranda’s complaint, the company’s former director and two executives of another software firm allegedly conspired to sell the firm’s patented software product without authorisation, causing massive financial losses.
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Fraud Discovered During Overseas Communication
Police said Miranda, who frequently stays abroad, had entrusted the day-to-day operations of the firm to the accused former director between November 2021 and August 2025. The fraud came to light when a UK-based client informed Miranda that they had contacted Neebal, the complainant’s firm, for a software product but received no response.
Upon his return to Mumbai, Miranda found that the company’s official website no longer displayed the patented software, which was instead listed and marketed by another firm.
When questioned, the former director gave evasive replies, prompting Miranda to initiate an internal forensic audit. The audit revealed serious financial irregularities, including evidence that the accused had unauthorisedly sold the patented software and diverted the proceeds to private accounts.
Forensic Audit and Fake Agreements
According to an EOW officer, the accused had executed three Master Service Agreements (MSAs) dated April 15, 2019, with another software firm. These agreements, purportedly signed by the accused former director and an official from the second company, were found to be part of the fraudulent transaction.
“The forensic audit confirmed manipulation of records, unauthorised data access, and the illegal transfer of intellectual property,” the officer said. “The accused exploited his position and trust to monetise the firm’s core product.”
Charges Filed Under BNS
The police have registered the case under several sections of the Bharatiya Nyaya Sanhita (BNS), 2023, including:
- Section 316 — Cheating
- Section 323 — Criminal Breach of Trust
- Section 318 — Forgery
- Section 120 — Criminal Conspiracy
These offences carry severe penalties, including imprisonment and substantial fines upon conviction.
EOW’s Investigation
The probe is being led by EOW Joint Commissioner Nishith Mishra, DCP Sangramsinh Nishandar, and Senior Inspector Dattatray Bakare. Investigators have already seized digital devices, financial records, and email server logs from the accused.
Preliminary findings suggest that the fraudulent transaction may have involved cross-border financial transfers. The EOW is also coordinating with cyber forensic experts to trace digital footprints and verify IP ownership.
Expert Insight: Rising Corporate Cyber Frauds
Commenting on the case, Ex-IPS officer and Cybercrime Expert Prof. Triveni Singh said that the incident exposes the growing risk of intellectual property (IP) theft and insider fraud within India’s fast-expanding technology sector.
“In today’s digital economy, intellectual property is the backbone of tech enterprises,” Prof. Singh said.
“When insiders gain unauthorised control over proprietary code or data assets, it not only causes financial damage but also erodes investor confidence. Regular cyber audits, access control mechanisms, and blockchain-based verification can help prevent such corporate frauds.”
He further emphasised that corporate cyber vigilance must evolve with technological complexity, as frauds today are often executed through sophisticated digital trails rather than physical transactions.
Conclusion
The ₹20 crore software fraud case underscores the need for robust corporate governance, digital accountability, and stronger internal cybersecurity frameworks.
As the EOW deepens its investigation, the case is expected to set a precedent for how intellectual property theft and corporate cybercrime are treated under India’s new criminal law framework — particularly the Bharatiya Nyaya Sanhita (BNS), which replaced the IPC in 2023.
