Ahmedabad steel trader alleges ₹1.29 crore fraud by buyers, EOW files case

The Economic Offences Wing (EOW) of the Ahmedabad Crime Branch has registered an FIR after a city-based steel trader alleged that two buyers cheated him and his brother of more than ₹1.29 crore by purchasing large consignments of iron and steel goods, selling them onward, and diverting the proceeds for personal use instead of clearing dues.

According to the First Information Report lodged on December 26, complainant Nimishbhai Shah (55), proprietor of Shri Parshvanath Steel Tube Traders, stated that the accused, identified as Hitesh Gangaram Panchal of AD Enterprise and Deepak Rathod of Kedivya Industries Pvt Ltd., gained the trust of his firm and that of his younger brother, Manishbhai Shah, who runs Karnavati Steel Traders from the same office in Navrangpura.

Shah told police that between December 21, 2024 and January 22, 2025, Hitesh Panchal purchased iron sheets, plates, galvanised sheets and coils, channels, CR sheets, angles, girders and strips through 24 separate tax invoices, amounting to goods worth ₹1.73 crore. While ₹73.06 lakh was paid through bank transfers, the remaining ₹1.00 crore allegedly remained unpaid.

Based on initial timely payments, Panchal was also supplied materials by Karnavati Steel Traders between January 7 and January 25, 2025. These consignments, worth ₹60.13 lakh, were partly paid for, with ₹42.59 lakh remitted through the bank. The balance of ₹17.54 lakh was not paid, the FIR states.

When repeated demands were made, Panchal allegedly issued multiple cheques totalling ₹85 lakh to Shah and another cheque of ₹18.21 lakh to his brother as 'security'. One cheque deposited in January 2025 was returned unpaid due to insufficient funds, following which Panchal allegedly stopped responding to calls and meetings.

The complainant further alleged that Deepak Rathod, representing Kedivya Industries Pvt. Ltd., purchased iron sheets and pipes worth ₹24.46 lakh between December 24 and December 27, 2024. Although ₹13.29 lakh was paid initially, cheques issued for the remaining ₹11.16 lakh were dishonoured due to insufficient funds. Subsequent cheques issued by directors of the firm were also returned unpaid, after which the factory premises were found closed, the FIR said.

Shah alleged that both Panchal and Rathod sold the goods onward to other traders, collected payments, and misappropriated the funds for personal use rather than settling dues with the suppliers. The total unpaid amount, including transactions involving both brothers’ firms, stands at ₹1.29 crore, police said.

Based on the complaint, the EOW has booked the accused for cheating, criminal breach of trust and related offences. Investigators are examining bank transactions, invoices, dishonoured cheques and transporter records to trace the flow of funds and identify other possible accused.