Mumbai, Feb 12: The D.B. Marg Police have registered an offence, which has now been taken up for investigation by the Economic Offences Wing (EOW) under Sections 409, 465, 467, 468, 471 and 120(B) of the Indian Penal Code, in connection with an alleged more than Rs 100 crore financial fraud involving 30 bogus companies and illegal foreign remittances.
The complaint has been filed by the Economic Offences Wing after the Enforcement Directorate (ED) sent a mail to the EOW in November 2025 regarding fake firms used to siphon money abroad. The EOW then initiated a preliminary inquiry.
The accused include Madanlal Jain, Geet Exim Pvt. Ltd., Vibha Impex Pvt. Ltd., Pahal Impex Pvt. Ltd. and several other allegedly bogus companies, as well as ING Vysya Bank (now Kotak Mahindra Bank) officials and others allegedly involved in opening fake accounts.
Shell firms and fake transactions
According to investigators, between 2010 and 2015, the accused allegedly conspired to float multiple shell companies in the names of Mangilal Motiram Dave and Naresh Mangilal Dave by allegedly misusing their signed documents.
These firms were falsely projected as being engaged in the diamond trade and road construction business. Fake invoices and fabricated bills were generated to show fictitious transactions. Funds were then transferred through these entities and subsequently routed abroad.
Police sources said the companies existed only on paper and carried out no real business operations. Their registered addresses were identical or interconnected, while their stated business location was shown as Mahidharpura, Surat, Gujarat.
Victims claim identity misuse
During the preliminary inquiry, Mangilal Dave and Naresh Dave stated that they were unaware their identities were being misused. They had worked at Mangal Jewellers of Megharaj Jain in Vile Parle, where they came into contact with Madanlal Jain.
On his instructions, they allegedly signed several documents at his Opera House office and were paid ₹10,000 per month, without knowledge of the transactions being carried out in their names.
Bank accounts and suspected KYC lapses
Investigations further revealed that over 30 bogus companies had opened multiple bank accounts, primarily with ING Vysya Bank (now Kotak Mahindra Bank) at Hughes Road, Mumbai.
Police suspect that certain officials deliberately bypassed mandatory KYC and verification procedures to facilitate the opening of these fraudulent accounts.
These accounts were allegedly used for circular transactions, layering of funds, cash withdrawals, misuse of bank loans and financial facilities, foreign remittances and the estimated loss. Officials estimate that the fraudulent transactions resulted in a loss of approximately ₹100 crore or more to the government exchequer.
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Senior Police Inspector Sandeep Vishwasrao is leading the probe. Authorities are examining the financial trail, the involvement of bank officials and the extent of foreign fund transfers. Further arrests and action are likely as the investigation progresses.
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