Ahmedabad businessman duped of over ₹9 crore in mobile phone trade fraud by UP supplier

The Economic Offences wing of the Ahmedabad City Crime branch has registered a case against a Uttar Pradesh-based trader, Harshit Rastogi, proprietor of Harshit Enterprises, for allegedly cheating an Ahmedabad-based businessman of more than ₹9.28 crore under the pretext of a mobile phone trading partnership.

As per the complaint filed by Kevas Jiyani (35), proprietor of Phone Town, the accused, identified as Harshit Rastogi, a resident of Rampur City, Uttar Pradesh, induced him into investing in a joint business of buying and selling branded mobile phones by promising a 50 per cent share of the profits.

In his statement, Jiyani stated that he has been running his business, Phone Town, located on Drive-in Road, Ahmedabad, since 2020, and has been dealing in the wholesale trade of mobile phones from various companies. During one of his business visits to Pune in March 2022, he met Rastogi, who claimed to be engaged in similar trade under Harshit Enterprises and proposed a partnership.

Rastogi allegedly gained the complainant’s trust over several months and persuaded him to transfer advance payments received from companies to buy mobile phones through his enterprise. Between June 2022 and October 2022, Jiyani transferred ₹6.73 crore from his business accounts to Rastogi’s account.

Despite receiving large payments meant for the purchase of mobile phones, Rastogi neither delivered the consignments nor refunded the money. He is also accused of taking delivery of 386 iPhones worth ₹2.56 crore from Phone Town, for which he made only partial payments amounting to ₹82,000.

To build confidence, Rastogi had initially made small payments for earlier consignments, after which he allegedly began citing technical issues with online orders, claiming refunds were “stuck and would take 40 to 50 days to process. On this pretext, he reportedly convinced Jiyani to send further payments to maintain 'business' continuity”.

In total, the complainant claims to have been defrauded of ₹9.29 crore, of which only ₹82,000 was returned. Rastogi allegedly stopped responding to calls and messages after February 2023 despite repeatedly promising to clear the dues within two months.

The EOW officials said the accused had operated from multiple locations, Rampur in Uttar Pradesh, Pune, and Ahmedabad, and used the same business identity to transact with multiple suppliers and clients.

The case has been registered under Sections of the Bharatiya Nyaya Sanhita. The police are also verifying whether Rastogi defrauded other traders using similar methods and if his firm, Harshit Enterprises, was used to launder or divert the money to other accounts.

Officials said that similar frauds have been reported in Gujarat and Maharashtra, where traders were promised high-margin deals on branded mobile phones and were duped after large advance transfers.

“The complainant has provided bank transaction records, invoice copies, and consignment details, which are now being examined. Further action will be taken once Rastogi’s whereabouts are confirmed,” a senior officer said.

The accused is yet to be arrested. Police said efforts are underway to trace him to Uttar Pradesh and other possible locations where he may have operated from.