Mumbai, Feb 17: A city-based businessman has lodged a complaint alleging criminal breach of trust and cheating to the tune of ₹11.94 crore by the directors and sales manager of a private chemical company.
Complainant Ketan Chandrakant Shah (55), a businessman residing at August Kranti Marg, has filed a complaint with the Economic Offences Wing (EOW), alleging cheating and criminal breach of trust against the directors and sales manager of BMG Chemicals Pvt Ltd in a transaction amounting to ₹11.94 crore.
The EOW has registered an FIR at Marine Drive Police Station. The complainant, Ketan Chandrakant Shah of Mumbai, has alleged that he periodically supplied chemical goods worth ₹11,94,43,193 to BMG Chemicals Pvt Ltd.
Background of companies and business ties
According to police sources, Ketan Shah stated that he has been residing at the said address with his family since 1994 and is a director of Chemical Corp Pvt Ltd, a chemical trading company. The firm’s registered office is located at Nariman Point.
Apart from Shah, his elder brother Nilesh Chandrakant Shah and his uncle Harshad Jayantilal Shah are also directors of the company. Shah said he has been authorised by his company to lodge the complaint.
According to the complaint, Shah has known Mahesh Wadialal Gandhi and Geeta Mahesh Gandhi, directors of BMG Chemicals Pvt Ltd, for the past 25 years, as both companies are engaged in chemical trading. The registered offices of BMG Chemicals Pvt Ltd are located at Vile Parle (East) and Ahmedabad, Gujarat.
Alleged default and outstanding dues
Shah alleged that as per an oral agreement, Chemical Corp Pvt Ltd supplied chemicals to BMG Chemicals Pvt Ltd against purchase orders received via email, and payments were to be made within 90 days of delivery. The goods were regularly supplied and payments were initially made on time.
However, Shah alleged that from October 21, 2024 onwards, payments were delayed. The last invoice was raised on May 7, 2025, and the final delivery was made on May 9, 2025. BMG Chemicals Pvt Ltd made its last payment of ₹20 lakh on May 9, 2025. Thereafter, no payments were received.
Between October 21, 2024 and May 7, 2025, Chemical Corp Pvt Ltd supplied chemicals worth ₹12,01,59,006 to BMG Chemicals Pvt Ltd. Out of this amount, ₹7,15,813 was adjusted in another transaction, leaving an outstanding amount of ₹11,94,43,193, which remains unpaid. Shah claimed that Mahesh Gandhi had provided a ledger confirmation acknowledging the outstanding dues.
In March 2025, Mahesh Gandhi allegedly issued post-dated cheques towards the payment. However, when four of these cheques were deposited on June 12, 2025, they were dishonoured due to “stop payment” instructions. Shah alleged that the cheques were issued with dishonest intent and were deliberately stopped to avoid payment.
Allegations of misappropriation
The complainant further alleged that BMG Chemicals Pvt Ltd sold the chemicals supplied by his company to third parties and misappropriated the proceeds without clearing the dues. Despite repeated follow-ups, Gandhi and the company’s Sales Manager, Mahendra Mohite, allegedly assured him that payment would be made soon, prompting continued supply of goods.
Shah has accused Mahesh Gandhi, Geeta Mahesh Gandhi and Sales Manager Mahendra Mohite of dishonestly inducing his company to supply goods worth ₹11.94 crore and subsequently failing to pay, thereby committing cheating and criminal breach of trust. An FIR in this connection has been registered at Marine Drive Police Station, and further investigation is underway.
According to the complaint, the accused directors Mahesh Gandhi and Geeta Mahesh Gandhi, along with Sales Manager Mahendra Mohite, allegedly sold the supplied goods to third parties and misappropriated the sale proceeds for personal gain.
It is further alleged that despite repeated follow-ups, the company failed to remit the outstanding dues to the complainant. The total cheated amount has been stated as ₹11,94,43,193.
Also Watch:
EOW begins probe
The EOW has initiated an investigation into the matter. The case is being probed by Police Inspector Sandesh Manjarekar. Further inquiry is underway to ascertain the financial trail and alleged diversion of funds.
To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/
