A major commercial fraud case has surfaced in Ahmedabad after a scrap dealer accused two Odisha-based traders of cheating him out of ₹43.62 lakh by allegedly failing to supply scrap material despite receiving substantial payments.
The complaint has been registered by Danilimda Police, which has launched an investigation into allegations of cheating and criminal breach of trust.
Business Relationship Began in 2022
According to the complaint, the dispute stems from commercial transactions carried out between 2022 and 2023.
The complainant, Arshad Khan Shahzad Khan Pathan, 53, serves as the General Manager of G.S. Automobiles located in Ahmedabad’s Danilimda Kabadi Market area.
He alleged that the accused represented themselves as established scrap suppliers who regularly procured material through government tenders and supplied buyers across India.
Traders Allegedly Built Trust Through Initial Deliveries
The accused have been identified as Prashantbhai Pramodbhai Das and another individual identified as Vishwaranjan, both associated with Prime Traders in Odisha’s Puri district.
According to investigators, a scrap broker introduced the Ahmedabad businessman to the traders in February 2022.
To verify their credentials, the complainant reportedly travelled to Odisha and met the traders personally.
During the visit, he was shown their office and business operations, which allegedly convinced him that the company was capable of handling large-volume scrap orders.
Following the meeting, the complainant transferred approximately ₹12 lakh through RTGS, and the initial consignments were reportedly delivered as promised.
Payments Increased as Business Expanded
Police said the successful completion of the first transactions strengthened trust between the parties.
As the relationship developed, the accused allegedly sought additional funds, claiming they required larger capital to participate in government tenders and secure fresh scrap consignments.
Trusting their earlier performance, the complainant continued making payments through banking channels.
Account Reconciliation Revealed ₹43.62 Lakh Gap
The alleged fraud came to light during an internal account reconciliation exercise conducted by the complainant’s firm in 2023.
According to the complaint, records showed that payments totaling approximately ₹2.26 crore had been transferred to Prime Traders between 2022 and 2023.
However, scrap deliveries worth only about ₹1.82 crore were allegedly received.
This created an outstanding discrepancy of ₹43.62 lakh for which no material was supplied.
Repeated Assurances Failed
The complainant alleged that he travelled to Odisha multiple times to resolve the issue.
During those meetings, the traders allegedly assured him that the pending scrap material would be supplied after the completion of upcoming government tenders.
Despite repeated promises, no additional consignments were reportedly delivered.
According to the complaint, when the businessman later sought either delivery of the pending goods or a refund of the outstanding amount, the accused allegedly refused and stopped responding to communications.
Police Examining Financial Records
Based on the complaint, Danilimda Police have registered a case under relevant provisions related to cheating and criminal breach of trust.
Investigators are currently reviewing banking records, RTGS transactions, account statements and business documents to establish the complete sequence of events.
Police are also verifying the full identity and role of the second accused, identified in the complaint as Vishwaranjan.
Importance of Financial Reconciliation in Business
Commercial disputes involving supply shortages often remain unnoticed until detailed account reviews are conducted.
Regular reconciliation of invoices, purchase orders, payments and delivery records is critical for identifying discrepancies at an early stage. Professional bookkeeping services in india help businesses maintain accurate transaction records, monitor outstanding balances and strengthen financial controls.
Shunyatax Global Insight
At Shunyatax Global, we believe robust documentation and periodic financial reviews are essential safeguards against commercial fraud. The Ahmedabad scrap dispute highlights how long-term business relationships can still create significant financial risks when reconciliation and verification processes are delayed.
For more updates on financial fraud, taxation, compliance and business governance, visit Shunyatax.in and stay connected with Shunyatax Global.