Investigation into Multi-Crore Fraud in Ahmedabad’s Pharmaceutical Sector
The Economic Offences Wing of the Ahmedabad Police has launched an investigation into an alleged multi-crore fraud involving Shitalben Nao, also known as Shitalben Panchal, the proprietor of D M Corporation. This case has emerged from accusations that she defrauded a pharmaceutical trading firm, leaving substantial unpaid bills for raw materials essential for medicine production. The unfolding situation raises serious concerns about the vulnerabilities within the pharmaceutical supply chain.
Trust and Deceit: The Scheme Unfolds
The case stems from a First Information Report (FIR) filed by Bhaumikbhai Rameshbhai Patel, a partner at Macline Pharmaceuticals. Patel initiated the complaint after working with Shitalben, who began trading with his firm in May 2022. Initially, her punctual payments for smaller shipments earned her credibility, leading to larger orders over several months.
However, the trust that was built up quickly unraveled. Between May 2022 and January 2023, Shitalben ordered pharmaceutical raw materials valued at approximately ₹13.7 crore, acquiring essential compounds like azithromycin and paracetamol. While she managed to make payments totaling around ₹6.16 crore, an unpaid balance of ₹6.5 crore remains.
The Alarming Payment Practice
Patel informed investigators that to secure her orders, Shitalben issued a series of post-dated cheques from her Federal Bank account as collateral. Unfortunately, many of these cheques bounced, and others were substituted with new ones, creating a cycle of deferred payments. This tactic not only prolonged the outstanding debts but also raised red flags about her business practices.
Missing and Under Investigation
As the investigation deepens, it has been discovered that Shitalben has since closed her office located in Dudheshwar and is currently unreachable. This scenario has led investigators to suspect that there might be a premeditated scheme at play, rather than just a simple commercial dispute. Senior members of the Detection of Crime Branch (DCB) confirmed that a case has now been officially registered under the Bharatiya Nyaya Sanhita, focusing on issues related to cheating and criminal breach of trust.
With the Economic Offences Prevention Branch now handling the inquiry, officials have begun collecting statements from Patel, other partners at Macline Pharmaceuticals, and financial intermediaries involved in the transactions. Additionally, the investigation team is meticulously tracing bank records, cheque transactions, and communications related to the dealings during the crucial period in question.
Patterns of Fraud in Commercial Transactions
Authorities suggest that this case exemplifies common patterns in commercial fraud, where initial trust is cultivated to escalate business dealings before defaults occur. With Shitalben currently absent from the scene, the first priorities of the police will likely involve locating her and recovering the substantial unpaid debt. The incident also brings to light the pressing need to reassess the due diligence practices in high-stake pharmaceutical transactions, as fraudulent behavior can severely impact the supply chain and trustworthiness within the industry.
In a landscape where pharmaceutical integrity is essential for public health, this case serves as a stark reminder of the potential pitfalls that can arise in the absence of vigilant oversight. As the investigation continues, it remains crucial for stakeholders in the sector to adopt stringent measures to mitigate risks and ensure the reliability of their trading partners.
