The Economic Offences Wing (EOW) has registered a complaint against three directors of Turnrest Resources Pvt Ltd for allegedly defrauding investors of ₹144 crore through investment schemes tied to the Indonesian coal trade.
Who's Been Named
The accused have been identified as company director and chartered accountant Jay Harshadbhai Chotaliya, along with Mitesh Kiritbhai Sanghvi and Manish Govindbhai Dangi. The complaint was filed by 56-year-old Rajkot resident Jayendrabhai Muljibhai Akbari, who alleges the accused approached investors with proposals to invest in Turnrest Resources, presented as a company engaged in importing coal from Indonesia and selling it in India.
How Akbari Says He Got Drawn In
According to the complaint, Akbari was introduced to the investment opportunity in 2021 through his friend Arvindbhai Jasmantbhai Ramani, who operated Avadh Infrastructure Pvt Ltd. Ramani allegedly told him Chotaliya and his associates were running Turnrest Resources and claimed he and his own family members had already invested. Following this introduction, Akbari allegedly met Chotaliya at his office in Sunshine Arcade on Vidyakunj Main Road, Rajkot, in 2021, with Sanghvi and Dangi also reportedly present. The three accused allegedly explained the company's business model and various investment options, claiming funds would be used for coal trading operations over a five-year period.
Bold Projections and Big Promises
The accused allegedly projected the company's turnover could reach between ₹1,500 crore and ₹2,000 crore over the following five years, with investors promised substantial returns from the resulting profits. Those making deposits were also allegedly assured their principal would be repaid once the five-year period concluded.
Three Ways to Invest, One Especially Risky
According to the complaint, investors were offered three different ways to put money into the company. The first allowed investors to provide funds as straightforward bank deposits. The second involved purchasing shares in the company directly. The third, and by far the more unusual arrangement, allegedly encouraged investors to mortgage their own properties as security for bank cash-credit loans, and then invest that borrowed money into Turnrest Resources.
This third structure is particularly notable because it potentially exposed investors to risk on two fronts at once: not just losing the money they'd invested, but also carrying real liabilities tied to loans secured against their own properties, meaning a failed investment could threaten assets entirely unrelated to the original deposit.
What Investigators Are Now Examining
The EOW is expected to examine the company's financial records, banking transactions, investment agreements, and the actual movement of funds to determine exactly how the money was collected and what it was ultimately used for. This kind of thorough financial investigation will also need to verify the specific claims made to investors, including the company's actual coal-import business activity, its projected turnover figures, and whether the promised returns had any genuine basis at all.
Expert Perspective
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh said high-return investment schemes become particularly dangerous when investors are persuaded to commit borrowed money or mortgage valuable assets to participate. He advised that investors should always independently verify a company's actual business operations, regulatory status, financial records, and the identity of the people soliciting investment, before transferring any funds or offering property as security for a loan tied to that investment.
Why This Case Stands Out
The scale here, a ₹144 crore allegation, makes this case significant both because of the size of the purported investment network and the financial exposure allegedly created for individual investors through the property-mortgage arrangement. Investigators will still need to establish exactly how many investors were involved, the precise amount received from each person, and whether the funds were actually deployed toward the stated coal-trading business or diverted elsewhere entirely.
As with any case at this stage, the complaint remains under investigation, and the allegations against the three accused haven't yet been established in court. The EOW's probe will determine the full financial trail, the specific role each of the three accused played, and whether other individuals or entities were also involved in the alleged scheme.
FAQs
Q1. How much money is alleged to have been collected in this scheme?
₹144 crore, through investment proposals tied to a purported Indonesian coal-import and trading business.
Q2. What made the third investment option particularly risky?
It allegedly encouraged investors to mortgage their own properties for bank cash-credit loans, then invest that borrowed money into the company, exposing them to both investment loss and loan liability against their assets.
Q3. What returns were investors reportedly promised?
Company turnover projected between ₹1,500 crore and ₹2,000 crore over five years, with substantial returns from profits and repayment of principal at the end of that period.
Q4. Have the allegations against the three directors been proven?
No. The complaint is at the investigation stage, and the allegations have not yet been established in court.