Ahmedabad Businessman Alleges ₹1.18 Crore Investment Fraud by Healthcare Firm Partners

Juhapura resident alleges four men induced his family to invest ₹98 lakh in Styrun Health Care for a 10% stake and later obtained another ₹20 lakh from his acquaintance.

An Ahmedabad-based businessman has accused four partners associated with pharmaceutical trading firm Styrun Health Care of cheating his family and an acquaintance of ₹1.18 crore through alleged promises of business ownership, management profits and conversion of the firm into a private limited company.

The complaint was filed on October 12 by Kasam Ali Valibhai Kharodiya, 51, a Juhapura resident who runs the Evening Post Restaurant in Naranpura. The Economic Offences Prevention Branch of the Ahmedabad City Crime Branch has taken up the case against Mohammadbhai Jalalbhai Chudia, Abidali Mohammadbhai Chudia, Akbarali Mohammadbhai Chudia and Manjurali Mohammadbhai Chudia, all residents of Makarba.

Family allegedly promised 10% stake for investment

According to the complaint, the four accused approached Kharodiya and his family in October 2021, claiming that Styrun Health Care, which trades in medicines from premises on Pirana Road, needed funds to expand its operations.

After visiting the firm's premises and discussing the proposal, Kharodiya's family allegedly agreed to invest ₹1.25 crore in exchange for a 10% stake in the business. The payment was to be made over eight months, with the agreement also providing for management profits subject to specified conditions.

Between October 2021 and January 2022, Kharodiya and his family allegedly paid ₹88 lakh through cash transactions and bank transfers to the firm and one of the accused. The total investment subsequently reached ₹98 lakh, the complaint stated.

Partnership documents signed in March 2022

On March 29, 2022, the parties allegedly signed documents formalising the partnership arrangement. Under the agreement, Kharodiya's sons, Kamiyab Ali and Mohsin Ali, were each to receive a 5% stake in the business.

The documents were notarised, and the benefits under the agreement were to take effect from October 4, 2021, according to the complaint.

Kharodiya further alleged that in May 2022, the accused asked his sons to provide blank cheques, claiming that the investment would be adjusted in the firm's accounts and returned to their bank accounts. On May 23, money was allegedly transferred from the sons' accounts to the personal accounts of two of the accused.

₹20 lakh borrowed for proposed company conversion

The complainant alleged that his family did not receive the promised profits until 2024. Towards the end of that year, the accused reportedly told them that Styrun Health Care would be converted into a private limited company and that the family would be offered a directorship.

The accused allegedly sought additional funds to facilitate the proposed conversion. Kharodiya subsequently borrowed ₹20 lakh from his acquaintance, Pinalbhai Surendrabhai Shah, and provided the amount in connection with the business proposal.

However, the proposed conversion did not materialise, the complaint stated.

Audit report allegedly withheld, investment not returned

In 2025, when Kharodiya's son questioned the partnership documents, Manjurali allegedly claimed that the agreement had been prepared only as security and carried no actual value.

The family subsequently sought the firm's audit report to verify its financial position, but the document was allegedly not provided.

According to the complaint, the accused claimed that the business was running at a loss but neither furnished the audit report nor returned the family's ₹98 lakh investment or the additional ₹20 lakh obtained from Shah.

Crime Branch takes up investigation

The complaint names the four men and seeks legal action against them and any other persons found to be involved.

The investigation is expected to examine the financial transactions, partnership documents and movement of funds to establish the circumstances surrounding the alleged investment fraud.