Ghaziabad: A case of alleged fraud involving ₹50 lakh has been reported in the Kavinagar area, with a local drug trader accusing Uttam Kumar Jain, former director of Bengaluru-based Mahavir Medicare, of misappropriating the money. According to the complaint, Jain allegedly asked drug trader Rajat Gupta, who was working as the company’s clearing and forwarding (C&F) agent for western Uttar Pradesh in 2019, to transfer ₹50 lakh to his personal bank account through RTGS, citing technical problems with the company’s payment system.
Gupta allegedly transferred the amount after relying on the assurance that the money would subsequently be deposited into the company’s account once the technical issue was resolved. However, the complainant has alleged that the amount was neither deposited into Mahavir Medicare’s account nor returned to him.
Police have registered a case based on Gupta’s complaint and initiated an investigation. Officials said further legal action would be taken after examining the facts, financial records and other evidence related to the transaction.
Trader Was Working as Company’s C&F Agent
Rajat Gupta, a resident of Kavinagar, operates his drug distribution business under the name SB Distributor. In 2019, he was working as the C&F agent for Mahavir Medicare in the western Uttar Pradesh region. During that period, he was in business contact with Uttam Kumar Jain, who was then serving as a director of the Bengaluru-based company.
According to the complaint, on July 30, 2019, Jain asked Gupta to transfer ₹50 lakh to his personal bank account. Jain allegedly told him that the company was facing a technical problem and was therefore unable to receive the payment directly into its account.
The complainant said Jain assured him that the money would later be transferred to the company’s account after the technical problem was resolved. Trusting the company director, Gupta transferred ₹50 lakh through RTGS to the bank account provided by Jain.
Amount Allegedly Never Reached Company Account
Gupta has alleged that after receiving the ₹50 lakh, Jain did not deposit the amount into Mahavir Medicare’s account. The money was also allegedly not returned to Gupta.
According to the complaint, the drug trader subsequently contacted Jain several times regarding the payment and sought clarification about the status of the amount. However, when the money was allegedly not returned, Gupta approached the police and filed a complaint.
Investigators are now examining why the ₹50 lakh was transferred to a personal account instead of the company’s account and how the money was allegedly used after the transaction. Bank statements, RTGS records and other financial documents are expected to form an important part of the investigation.
Police are also likely to examine the business relationship between Gupta and Jain, previous transactions between them and records relating to Mahavir Medicare to establish the circumstances surrounding the payment.
Case Registered on August 6
ACP Kavinagar Siddharth Gautam said the Kavinagar police registered a case on the basis of Rajat Gupta’s complaint. The case was registered on August 6, following which an investigation was initiated.
As part of the probe, police will examine the banking trail connected to the ₹50 lakh transaction, the RTGS details and relevant business documents. Investigators may also verify communications and other records that could establish whether Jain had assured Gupta that the money would be transferred to the company’s account.
Officials said further legal action would be taken on the basis of evidence collected during the investigation. At present, the probe is focused on establishing the circumstances under which the ₹50 lakh was transferred, tracing the subsequent movement of the money and verifying the allegations made by the complainant.
The allegations are part of the police investigation, and the exact circumstances of the transaction will be established based on documentary evidence and other findings.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
