Ahmedabad distillery firm alleges ₹37.84 lakh maize supply fraud, two Maharashtra traders booked

The manager of an Ahmedabad-based ethanol manufacturing company has lodged a police complaint alleging that two traders from Maharashtra cheated the firm of more than ₹37.84 lakh by accepting payments for maize consignments that were never delivered and subsequently issuing cheques that were dishonoured.

According to Anandnagar Police Station, Chandpreet Singh Ahluwalia, 61, works as a manager and authorised signatory of Grainfuel Distilleries Private Limited, which operates an ethanol manufacturing facility in Kheda district and manages its commercial operations from Ahmedabad.

Police said the company had entered into a business relationship around one-and-a-half years ago with Haroon Sheikh, proprietor of Haroon Sheikh Traders, and Raiz Khan, proprietor of Tamanna Traders, both based in Malegaon, Maharashtra. The traders had reportedly approached the company offering to supply maize, a key raw material used in ethanol production.

Initially, the business transactions proceeded smoothly, with the suppliers allegedly sending photographs of loaded trucks, transport details, invoices, weighbridge slips and driver information before receiving payments. Encouraged by the earlier transactions, the company continued purchasing maize from the traders.

After some months, Haroon Sheikh informed the company that future supplies would be routed through Tamanna Traders, owned by Raiz Khan. Subsequently, the company placed purchase orders worth approximately ₹71 lakh.

Investigators said the traders allegedly forwarded six invoices, truck details, lorry receipts, photographs of loaded consignments and weighbridge records through WhatsApp, based on which the company released payments. On January 11, 2025, the firm transferred ₹35.50 lakh against the promised supply.

However, despite assurances, the consignments never arrived. When contacted, the traders allegedly admitted that the goods had not been dispatched. Company representatives later travelled to Malegaon and met the accused, who reportedly promised to either supply the goods or refund the money.

Police said only a portion of the promised material, valued at around ₹6.51 lakh, was eventually supplied, while maize worth nearly ₹29 lakh remained undelivered.

As disputes escalated, the accused allegedly issued a series of post-dated cheques as settlement. Four cheques issued by Tamanna Traders, collectively worth over ₹28 lakh, and another cheque issued by Haroon Sheikh were deposited by the complainant company. However, all the cheques were returned unpaid by the banks with remarks indicating payment restrictions and account-related issues.

When the company again demanded either delivery of goods or repayment of the outstanding amount, the accused allegedly refused and informed the complainant that neither the goods nor the money would be returned.

Based on the complaint, Anandnagar Police have registered a case of criminal breach of trust and cheating against the proprietors of Haroon Sheikh Traders and Tamanna Traders. The complainant has alleged a total financial loss of ₹37.84 lakh.

Police have launched an investigation and are examining the financial transactions, invoices, bank records and other documentary evidence submitted by the company.