Private Company Directors Accused of ₹144-Crore Investment Fraud in Rajkot

The Economic Offences Wing (EOW) has registered a complaint against three directors of Turnrest Resources Pvt Ltd for allegedly defrauding investors of ₹144 crore by promising high returns from the Indonesian coal trade.

The accused have been identified as company director and chartered accountant Jay Harshadbhai Chotaliya, along with his alleged associates Mitesh Kiritbhai Sanghvi and Manish Govindbhai Dangi. The complaint was filed by 56-year-old Rajkot resident Jayendrabhai Muljibhai Akbari.

₹144-Crore Fraud Complaint Filed With EOW

According to the complaint, the accused allegedly approached investors with investment schemes linked to Turnrest Resources, which was presented as a company importing Indonesian coal and selling it in India.

The complainant stated that he was introduced to the investment opportunity in 2021 through his friend Arvindbhai Jasmantbhai Ramani, who operated Avadh Infrastructure Pvt Ltd. Ramani allegedly told him that Jay and his two associates were running Turnrest Resources and that he and his family had already invested in the company.

Investors Allegedly Promised High Returns

The complainant said he subsequently met Jay at his office at Sunshine Arcade on Vidyakunj Main Road in Rajkot in 2021. Mitesh and Manish were also allegedly present at the meeting.

The three accused allegedly explained different investment options and claimed that the company would use the funds for its coal business for five years. They allegedly projected that the company’s turnover would reach around ₹1,500 crore to ₹2,000 crore over the next five years.

Investors were allegedly promised high returns from the profits generated by the business, along with repayment of amounts kept as deposits after five years.

Three Investment Schemes Offered

According to the complaint, investors were offered three types of investment arrangements.

The first involved investing money as a deposit through a bank. The second involved purchasing shares of the company. Under the third arrangement, investors could allegedly mortgage their properties as security for a bank cash-credit (CC) loan and invest the loan amount in the company.

Properties Allegedly Mortgaged for Loans

The complaint alleges that investors were encouraged to use their properties as collateral to obtain bank finance, with the loan amounts then being invested in Turnrest Resources.

The EOW complaint alleges that the accused used promises of high returns and future business growth to attract investments from multiple investors. The total alleged fraud amount has been stated as ₹144 crore.

The EOW is expected to investigate the financial transactions, investment arrangements, use of the funds and the role of the three accused.