Mumbai: Mazgaon Court Orders Probe Into ₹24 Crore Fraud Case, Directs Police To Act On Company Complaint

Mumbai, April 18, 2026: The Additional Chief Judicial Magistrate at Mazgaon has directed the Pydhonie Police Station to investigate an alleged Rs 24 crore financial fraud after taking cognisance of a complaint filed by Prathamesh Shipping Pvt. Ltd. through its Managing Director Rajendra M. Kulkarni.

Court orders probe citing prima facie evidence

In its order dated April 16, the court observed that the complaint disclosed cognisable offences and warranted a police investigation, especially in light of alleged inaction by the police despite multiple representations.

Allegations of police inaction flagged

The complaint copy raised serious allegations against the Economic Offences Wing and local police for failing to register an FIR, despite earlier inquiries and issuance of questionnaires to the accused. Police authorities had reportedly concluded that no cognisable offence was made out.

Court disagrees with police findings

However, the court disagreed, noting that the complaint was supported by an affidavit and documents that prima facie substantiated the allegations.

“Considering the allegations in the complaint, documents on record and the report submitted, it appears that the complaint reveals commission of cognisable offences for which investigation by police is necessary,” the court observed.

Investigation ordered under BNSS provisions

Invoking powers under Section 175(3) of the Bharatiya Nagarik Suraksha Sanhita, the magistrate directed the Pydhonie Police Station to investigate the case and submit a final report.

Multiple accused named in complaint

The matter will now be probed by the police, focusing on allegations of fraud, criminal breach of trust, and financial irregularities.

The complaint has been filed against the two directors and a manager of the company, along with several other employees of the Mumbai-based bank, who allegedly assisted the accused in committing the alleged crime.

Alleged misappropriation of Rs 24 crore

The complainant has alleged that the accused allegedly misappropriated company funds amounting to approximately Rs 24 crore through a series of fraudulent transactions, diversion of funds, and unauthorised financial dealings.

Claims of fund diversion and undisclosed transactions

According to the complaint, funds were allegedly transferred to related entities and family members of the accused, large sums were withdrawn without proper accounting, and client payments were allegedly diverted to firms controlled by the accused. The company has also alleged that financial records for transactions running into hundreds of crores were not disclosed.

Allegations of fictitious transactions and liabilities

It is further alleged that certain transactions were falsely shown as loans, including dealings involving a purported fictitious entity, to create wrongful financial liabilities on the company.

Bank officials accused of complicity

Serious allegations have also been levelled against the bank’s officials, accusing them of facilitating the loan transactions and engaging in coercive recovery practices. The complaint claims that loans were allegedly sanctioned without proper authorisation and secured against properties that could not legally be mortgaged.

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Claims of intimidation during recovery

The complainant has also alleged intimidation tactics during recovery, including threats of forceful possession and impersonation of police personnel.

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