The Hindu : New Delhi News : Two held for cheating

Online edition of India's National Newspaper
Sunday, May 16, 2004

New Delhi

New Delhi

Two held for cheating

By Our Staff Reporter

NEW DELHI, MAY 15. A chartered accountant and a company secretary of a glass manufacturing company, which has now been taken over by a French multi-national, have been arrested by the Economic Offences Wing (EOW) of the Delhi police for allegedly duping a finance company in the name of buying glass manufacturing equipment.

According to the police, a complaint was lodged at Kalkaji police station in South Delhi saying that they had sanctioned Rs. 2.2 crores to Maharashtra Glass and Agro Limited (MGAL), based in Pune, which had been fraudulently siphoned off. The case was later transferred to the Criminal Breach of Trust Section of the EOW.

Following investigations, the police arrested S.K. Sharma, the chartered accountant and finance controller of MGAL, and P.V. Acharya, the company secretary of the firm on May 11.

It came to light that in 1996 Sharma and Acharya had applied to Wipro Finance Limited, based in Delhi, for loans worth Rs. 2.2 crores for buying machinery used in manufacturing glass. The duo had asked the finance company to release the amount directly in the name of TAM Glass Engineering Company, Pune, from which they were supposed to buy the equipment.

Inquiry revealed that the equipment was never bought and that TAM Glass Engineering Company never existed in the first place. Further investigations revealed that A.C. Gulati, Chairman of the MGAL, along with other directors of the company had conspired to avail of the loan amount fraudulently.

In order to dupe the finance company, the officials of the MGAL furnished forged documents. In fact, the company also got its own bogus inspection done by their own employee, a senior engineer. The "inspection report" was furnished to Wipro Finance mentioning that the information furnished to them about the MGAL was correct.

After the amount was sanctioned in the name of TAM Glass Engineering, Gulati and other accused siphoned off the money. The final destination of the money is yet to be ascertained.

The police also came to know that Gulati had got the non-existing machinery insured from the United India Insurance Company again on the basis of bogus documents. Acharya, one the other hand, issued a fake certificate to statutory auditor, S.R. Batliboi and Co., mentioning that the glass manufacturing machinery was in possession of the MGAL.

While the arrested duo has been sent to judicial custody, the police are now trying to trace Gulati and other directors of the company. Also, efforts are on to trace and recover the loan amount.

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