₹1.56 Crore E-Procurement Fraud: Alleged Mastermind Arrested In Surat After Three Months On The Run

Ahmedabad City Police have arrested the alleged mastermind behind the diversion of more than ₹1.56 crore from a private technology company, nearly three months after he allegedly exploited his administrative access to reroute company funds into bank accounts controlled by himself and an associate.

The accused, identified as 37-year-old Nikhil Rajeshbhai Khalas, was arrested from Katargam in Surat following a joint operation by Ellisbridge Police and the Local Crime Branch (LCB), Zone-7.

Accused Allegedly Misused Administrator Access

According to police, Khalas worked as a support executive in the bidding division of E-Procurement Technology Limited and allegedly used the administrator privileges assigned to him to manipulate the company's online payment system.

Investigators allege that instead of routing payments to genuine bidders, he altered beneficiary details and entered bank account information belonging to himself and an associate.

Police suspect the alleged diversion was carried out as part of a criminal conspiracy, resulting in the misappropriation of ₹1.56 crore from the company.

FIR Registered In May

After the alleged fraud came to light, Ellisbridge Police Station registered an FIR on May 19, 2026.

The case was filed under relevant provisions of the Bharatiya Nyaya Sanhita relating to criminal breach of trust, cheating, forgery and criminal conspiracy, along with applicable provisions of the Information Technology Act.

The investigation is being led by Police Inspector K M Bhuva of Ellisbridge Police Station under the supervision of Deputy Commissioner of Police Shivam Verma, Zone-7.

Accused Allegedly Moved Across Several States

Police said Khalas remained absconding after the alleged offence and frequently changed his location to evade arrest.

During the investigation, he allegedly travelled across several states, including Maharashtra, Madhya Pradesh, Jammu and Kashmir, Chhattisgarh and Gujarat. Investigators also suspect that he took steps to conceal his digital footprint to avoid detection.

The breakthrough reportedly came after PSI H D Vaghela of LCB Zone-7 and his team developed technical intelligence indicating that Khalas was hiding in Katargam, Surat.

An Ellisbridge Police team was subsequently sent to Surat, where officers mounted surveillance before apprehending him.

Three Phones And Laptop Seized

Police seized three mobile phones of different brands and a Dell laptop during the arrest. The devices have been valued at ₹28,000 collectively.

Investigators are examining the digital evidence recovered from the devices as part of the probe.

₹61.44 Lakh Frozen

Police said the investigation has already established a digital trail of the allegedly diverted funds.

Authorities have frozen ₹61.44 lakh suspected to be linked to the alleged fraud. Police are seeking custody of the accused to recover the remaining amount and identify any additional beneficiaries or alleged conspirators.

The investigation is continuing to trace the balance of the allegedly embezzled funds, analyse the seized digital devices and determine whether others were involved in the alleged fraud.