Ahmedabad pharma firm’s promoter accused of ₹57 crore SBI fraud

Ahmedabad-based pharmaceutical company Jay Formulations has come under the scanner after its owner and promoter Ashwin Patel was accused of allegedly defrauding the State Bank of India (SBI) of ₹57.05 crore. In connection with the alleged fraud, the Central Bureau of Investigation (CBI) conducted raids at multiple locations linked to the accused, including his office on Ashram Road, residence in Shivranjani and factory premises.

The searches were carried out around May 22 on the basis of warrants issued by an Ahmedabad court. During the operation, CBI officials also brought Rakshit Ashwin Patel, Komal Rakshit Patel and Arjav Mahesh Patel under the ambit of the investigation.

According to the CBI, Ashwin Patel allegedly obtained credit facilities from SBI by submitting falsified financial statements and other documents. Investigators suspect that after securing the loans, the funds were diverted to other companies instead of being used for the purposes for which they were sanctioned.

The agency stated that the alleged fraud caused a loss of ₹57.05 crore to the public sector bank. A press release issued by the CBI said that the case involves cheating, diversion of funds and misuse of bank credit facilities.

Sources said an FIR has been registered in connection with the case in Kolkata. A complaint filed at Kolkata's BS&FB Police Station by Prakash Bisht, Deputy General Manager of an SBI branch, names Ashwin Patel as the prime accused. The complaint also names Rakshit Ashwin Patel and Komal Rakshit Patel, residents of C-6 Mayurpankh Society in Ahmedabad’s Satellite area, along with Arjav Mahesh Patel, as co-accused.

The accused have been booked under charges of criminal conspiracy, cheating, dishonest misappropriation of property and criminal breach of trust. Investigators are examining the flow of funds and the role of the other accused in the alleged diversion of loan proceeds.

The CBI is continuing its probe to determine the full extent of the alleged fraud and identify whether additional individuals or entities were involved in the transaction trail.