Mumbai Police Initiates Case Involving Software Fraud
Mumbai Police have filed a significant case against three individuals, including a former director of a software manufacturing company, over allegations of defrauding the firm of nearly ₹20 crore. This alleged scheme reportedly involved the unauthorized sale of a patented software product to another organization, and the case has been handed over to the Economic Offences Wing (EOW) for a thorough investigation.
The Complaint
The complaint was lodged by Joe Pious Jude Miranda, the director of a Mumbai-based IT firm specializing in various tech services including data engineering, cloud solutions, Internet of Things (IoT) consulting, automation, artificial intelligence (AI), API integration, and mobile app development. The company also collaborates with government agencies and public sector units to facilitate digital transformation and modernize processes.
According to Miranda’s statement, the former director and two executives from a different software firm allegedly conspired to sell the company’s patented software without the necessary authorization, resulting in substantial financial losses.
Discovery of the Fraud
Miranda, who often travels abroad for business, had entrusted the day-to-day management of his company to the former director between November 2021 and August 2025. The fraudulent activity came to light after a UK-based client reached out to Miranda, indicating they had sought a software product from Neebal, the complainant’s firm, but had received no response.
Upon returning to Mumbai, Miranda observed that the company’s website no longer featured the patented software, which was instead being marketed by a different entity. When he probed the former director about this issue, he received vague responses, prompting Miranda to launch an internal forensic audit. This audit revealed significant financial discrepancies, including evidence suggesting that the accused had illicitly sold the patented software and funneled the profits into private accounts.
Forensic Audit Uncovers Deception
As reported by an EOW officer, the audit unveiled three Master Service Agreements (MSAs) dated April 15, 2019, which had been executed with the other software firm. These agreements were supposedly signed by the former director and an official from the second company, and they played a crucial role in the fraudulent dealings.
The officer noted, “The forensic audit confirmed record manipulation, unauthorized access to data, and the illegal transfer of intellectual property. The accused exploited his position and the trust placed in him to monetize the firm’s core product.”
Legal Charges Filed
The police registered the case under multiple sections of the Bharatiya Nyaya Sanhita (BNS), 2023, which include:
- Section 316 — Cheating
- Section 323 — Criminal Breach of Trust
- Section 318 — Forgery
- Section 120 — Criminal Conspiracy
These offenses, if proven, could lead to severe penalties, including lengthy imprisonment and hefty fines.
Current Investigation by the EOW
The investigation is currently spearheaded by EOW Joint Commissioner Nishith Mishra, along with DCP Sangramsinh Nishandar and Senior Inspector Dattatray Bakare. Investigators have already confiscated digital devices, financial documents, and server logs associated with the accused.
Preliminary findings suggest the fraudulent transactions may involve cross-border financial movements. To enhance their investigative approach, the EOW is collaborating with cyber forensic experts to track digital footprints and verify intellectual property ownership.
Expert Commentary on Rising Corporate Frauds
Former IPS officer and cybercrime expert, Prof. Triveni Singh, shared insights on the growing threats of intellectual property theft and insider fraud in India’s rapidly expanding tech sector.
“In today’s digital economy, intellectual property forms the foundation of technology companies,” Prof. Singh explained. “When insiders gain unauthorized access to proprietary code or data, it not only leads to financial losses but also undermines investor confidence. Regular cyber audits, rigorous access controls, and blockchain-based verification systems are essential in preventing corporate fraud.”
He emphasized that the advancement of technology necessitates enhanced vigilance against cyber threats, as many modern frauds are conducted through sophisticated digital means rather than traditional transactions.
