New Delhi. A major financial fraud involving pharmaceutical and packaging material supply has come to light in Ahmedabad, where four businessmen have been accused of procuring goods on credit and failing to clear payments amounting to over ₹3.09 crore. The Economic Offences Prevention Branch has registered a case and initiated a detailed investigation into the matter.
The Assurances and Unpaid Dues
According to the complaint filed by Manan Nimeshkumar Patel, partner of Lozenge Pharma Industries, business contact with the accused was established in February 2024. A meeting was subsequently held at a hotel on SG Highway, where directors of Swadh’s Import and Export Pvt Ltd, Manish D Verma and Sandeep Singh Bahadur, allegedly assured that all payments would be cleared within 90 days.
Following these assurances, pharmaceutical capsule products worth approximately ₹1.18 crore were supplied between July and October 2024. However, only ₹35 lakh was paid, leaving an outstanding amount of ₹83.37 lakh. Additional goods were also supplied to Styrun Health Care, resulting in further unpaid dues exceeding ₹30 lakh.
In a separate complaint, Girishbhai Sumanlal Shah, owner of Shah Paper Pack, alleged that the accused procured corrugated boxes and mono cartons on 90-day credit terms but failed to make payments. The combined outstanding dues from multiple transactions reportedly reached ₹3.09 crore. Despite repeated follow-ups, the payments were allegedly not cleared.
Modus Operandi of the Fraud
Based on the complaints, police have registered a case under relevant sections and begun examining financial records, bank transactions, and supporting documents to trace the flow of funds and verify the alleged fraud.
Preliminary findings suggest that the accused allegedly built trust with suppliers by making small initial payments before placing larger orders on credit. Later, payments were reportedly delayed under the pretext of bank financing or loan approvals.
Investigators further stated that repeated assurances were given to suppliers that dues would be cleared once financial arrangements were completed, but no substantial payments were made even after several months.
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Impact on Local Trade and Wider Investigation
The case has raised concern among local traders, as small and medium-scale suppliers are increasingly being exposed to similar credit-based frauds, impacting liquidity and business stability in the sector.
Officials noted that a comprehensive probe is underway, including scrutiny of banking channels, company structures, and digital records to identify possible links and additional beneficiaries. Authorities also believe that the fraud may extend beyond Gujarat, with transactions in other states under review.
Business associations have urged stricter enforcement action to prevent such credit-based cheating cases, warning that repeated incidents could severely impact the supply chain ecosystem for small industries.
Investigators are currently mapping interlinked companies and financial transactions to determine whether the accused entities operated as part of a larger network. Officials indicated that further revelations are likely as the investigation progresses, potentially exposing a wider interstate fraud pattern.
