Thane: Police in Maharashtra’s Thane district have registered a criminal case against a 35-year-old former employee of an oil trading firm for allegedly cheating his employer of ₹38.61 lakh by misusing company funds and diverting stock over an extended period.
According to police officials, the accused, Prakash Jabbar Singh, was earlier employed with the complainant’s oil trading company. The alleged financial irregularities are stated to have taken place between January 2024 and October 2024, during which the accused is suspected to have carried out a series of unauthorised transactions while entrusted with company operations.
Diversion of Customer-Bound Goods Alleged
The complainant told the police that the accused diverted company products worth ₹23.56 lakh that were meant to be supplied to customers. These goods neither reached the intended buyers nor were they properly accounted for in the company’s official records.
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Investigators said the accused allegedly concealed the diversion of stock by manipulating internal records, allowing the misappropriation to continue for several months without detection. The irregularities came to light only after discrepancies were noticed during routine stock verification.
Company Funds Used for Personal Business
In addition to diverting customer-bound goods, the accused is also alleged to have used company funds to purchase products worth approximately ₹15 lakh. Police said these goods were not used for the firm’s business operations but were instead sold through the accused’s personal grocery store, resulting in unlawful personal gain.
Officials said the combined value of the diverted stock and misused funds has been assessed at ₹38.61 lakh, causing significant financial loss to the oil trader.
Discrepancies Detected During Account Reconciliation
The fraud came to light after the trader conducted a detailed reconciliation of accounts and inventory. During the process, substantial mismatches were found between stock records and actual deliveries. Several customers also reportedly confirmed that they had made payments but did not receive the full quantity of goods.
Following an internal inquiry, the role of the former employee allegedly emerged, prompting the trader to approach the police with a formal complaint.
Case Registered Under BNS Provisions
Based on the complaint, the police have registered a First Information Report (FIR) under Section 316(2) (criminal breach of trust) and Section 318(4) (cheating) of the Bharatiya Nyaya Sanhita (BNS).
The accused has not been arrested so far. Police officials said a decision regarding arrest will be taken after further examination of evidence and statements.
Probe Focuses on Financial Records and Stock Movement
Police said they are scrutinising the company’s financial records, bank transactions, stock movement registers and customer-related documents. Preliminary findings suggest substance in the allegations, though a detailed investigation is underway to establish the full scope of the fraud and trace the flow of funds.
Investigators are also examining whether the accused acted alone or if any other individuals were involved in facilitating or concealing the alleged misappropriation.
Police officials said further legal action will be taken based on the outcome of the investigation. The case is being viewed as a serious instance of internal breach of trust, highlighting how prolonged misuse of authority within a company can result in substantial financial damage.
