The Economic Offences Wing (EOW) has registered a complaint against three directors of Turnrest Resources Pvt Ltd for allegedly defrauding investors of ₹144 crore through investment schemes linked to the Indonesian coal trade.
The accused have been identified as company director and chartered accountant Jay Harshadbhai Chotaliya, along with Mitesh Kiritbhai Sanghvi and Manish Govindbhai Dangi. The complaint was filed by 56-year-old Rajkot resident Jayendrabhai Muljibhai Akbari. According to the complaint, the accused allegedly approached investors with proposals to invest money in Turnrest Resources, which was presented as a company engaged in importing coal from Indonesia and selling it in India.
The complainant stated that he was introduced to the investment opportunity in 2021 through his friend Arvindbhai Jasmantbhai Ramani, who operated Avadh Infrastructure Pvt Ltd. Ramani allegedly told him that Chotaliya and his associates were running Turnrest Resources and claimed that he and his family members had already invested in the company. Following the introduction, Akbari allegedly met Chotaliya at his office at Sunshine Arcade on Vidyakunj Main Road in Rajkot in 2021. Sanghvi and Dangi were also allegedly present during the meeting. The three accused allegedly explained the company’s business model and various investment options, claiming that the funds would be used for its coal trading operations for five years.
The accused allegedly projected that the company’s turnover could reach between ₹1,500 crore and ₹2,000 crore over the following five years. Investors were allegedly promised substantial returns from the profits generated by the business. Those making deposits were also allegedly assured that their principal amounts would be repaid after the five-year period.
According to the complaint, investors were offered three different arrangements to put money into the company. Under the first scheme, investors could provide funds as bank deposits. The second option involved purchasing shares in the company. The third and more unusual arrangement allegedly encouraged investors to mortgage their properties as security for bank cash-credit loans and then invest the borrowed funds in Turnrest Resources.
The complaint alleges that investors were encouraged to use valuable properties as collateral to obtain bank finance. The loan amounts were then allegedly channelled into the company as investments. The scheme therefore potentially exposed investors not only to the risk of losing their invested money but also to liabilities associated with the loans secured against their properties.
The EOW is now expected to examine the company’s financial records, banking transactions, investment agreements and movement of funds to determine how the money was collected and used. Investigators are also likely to verify the claims made to investors about the company’s coal-import business, projected turnover and promised returns.
Renowned cyber crime expert and former IPS officer Prof. Triveni Singh said high-return investment schemes can become particularly risky when investors are persuaded to commit borrowed money or mortgage valuable assets. He said investors should independently verify a company’s business operations, regulatory status, financial records and the identity of the people soliciting investments before transferring funds or offering property as security.
The ₹144-crore allegation makes the case significant because of the scale of the purported investment network and the financial exposure allegedly created for investors. Investigators will also have to establish the number of investors involved, the exact amount received from each person and whether the funds were actually used for the stated business purpose.
The complaint is at the investigation stage, and the allegations against the accused are yet to be established in court. The EOW’s probe will determine the financial trail, the role of the three accused and whether other individuals or entities were involved in the alleged investment scheme.
