Ahmedabad pharma firm alleges ₹3.09 crore fraud

The Economic Offences Prevention Branch of Ahmedabad Crime Branch has registered a case against four businessmen following allegations that they fraudulently obtained pharmaceutical and packaging materials on credit and failed to pay outstanding dues exceeding ₹3.09 crore.

Manthan Nimeshkumar Patel, 32, a partner in Lozenge Pharma Industries based in Naranpura, the accused include Manish D Verma and Sandeep Singh Bahadur, directors of Swadh's Import and Export Pvt Ltd, along with Manjurali Mohmandbhai Chudia and Abidali Chudia, directors of Styrun Health Care.

Patel alleged that he first came into contact with the accused in February 2024 through business interactions at Styrun Health Care's office in Pirana. Subsequently, a meeting was held at a hotel on SG Highway where Verma allegedly introduced Bahadur as the owner of a Mumbai-based export company and assured the complainant that all payments for goods supplied would be made within 90 days.

Lozenge Pharma Industries allegedly supplied pharmaceutical capsule products worth ₹1.18 crore to Swadh's Import and Export Pvt Ltd between July and October 2024. While the company reportedly received payments of ₹35 lakh, an amount of ₹83.37 lakh remained outstanding.

The complainant further alleged that, at the request of the accused, subsequent billing was shifted to Styrun Health Care owing to purported financial difficulties being faced by Swadh's Import and Export Pvt Ltd. Goods worth ₹48.83 lakh were allegedly supplied to Styrun Health Care between January and July 2024. After accounting for payments and returned goods, Patel claimed that ₹30.38 lakh remained unpaid.

The accused repeatedly sought extensions of time and assured the complainant that outstanding amounts would be cleared after obtaining bank finance. However, despite repeated follow-ups, the dues allegedly remained unpaid.

The complaint also refers to a separate transaction involving Ahmedabad-based Shah paper pack, owned by businessman Girishbhai Sumanlal Shah. Shah allegedly informed the complainant that the same accused had procured corrugated boxes and mono cartons on 90-day credit between May and September 2024. While payments of ₹13 lakh were allegedly made, goods worth more than ₹1.38 crore remained unpaid, with additional late payment charges claimed by the supplier.

Police records state that the combined outstanding amount claimed by Lozenge Pharma Industries and Shah paper pack, including late payment charges, stands at ₹3.09 crore.

Patel has alleged that the accused induced both companies to supply goods by making false assurances regarding payment and business prospects, while allegedly having no intention of clearing the dues in full. He further claimed that repeated demands for payment were met with assurances and requests for additional time, causing significant financial hardship to the suppliers.

Based on the complaint, the Economic Offences Prevention Branch has registered a case of cheating and criminal breach of trust against the accused and further investigation is on.