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Mumbai EOW Arrests Duo In ₹23.75 Crore Bank Guarantee Fraud

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Mumbai: The Economic Offences Wing (EOW), Mumbai, has arrested duo in a case of cheating, forgery, and criminal conspiracy after Welspun DI Pipes Ltd alleged that it was cheated of Rs.23.75 crore through forged bank guarantees submitted by Tirth Gopicon Ltd and its directors. In connection with the case, EOW has taken custody of the prime accused, Maheshbhai Kumbhani, director of Tirth Gopicon Ltd, and his associate Gaurav Pradeep Dhakad from Indore through the CBI and formally arrested them.

Based on the complaint, an FIR was initially registered in 2025 at NM Joshi Marg Police Station under relevant sections of the Bharatiya Nyaya Sanhita, 2023, and later transferred to the EOW for detailed investigation.

According to EOW officials, the investigation has revealed that the accused, in criminal conspiracy, submitted forged bank guarantees of Rs.12.50 crore and Rs.20 crore, purportedly issued by Punjab National Bank (PNB), Jalandhar and Baguiohati (Kolkata) branches, to fraudulently obtain large consignments of ductile iron (DI) pipes on credit from Welspun DI Pipes Ltd. Despite knowing that the guarantees were fake, the accused allegedly used them to secure deliveries worth Rs.89.10 crore between March 4, 2023, and March 24, 2025. While payments of Rs.64.30 crore were made, an amount of Rs.23.75 crore remains unpaid, resulting in wrongful gain to the accused and corresponding financial loss to Welspun, police said.

Welspun DI Pipes Ltd, which is engaged in manufacturing and supplying ductile iron pipes, caters about 30 per cent of its production directly to government projects across various states, while the remaining 70 per cent is sold in the open market. As per company policy, market sales are carried out either against advance payments or secured instruments such as letters of credit or bank guarantees. Tirth Gopicon Ltd, a construction company involved in road, drainage, water supply, and infrastructure projects, with registered offices in Ahmedabad and Indore, had secured a Rs.974 crore contract from the Madhya Pradesh Jal Nigam in 2023, for which it required a large supply of DI pipes.

During negotiations, Tirth Gopicon placed a purchase order worth Rs.31.11 crore with Welspun on March 4, 2023, seeking 45 days’ credit and offering a Rs.12.50 crore bank guarantee. Accordingly, a bank guarantee purportedly issued by PNB, Rama Mandi branch, Jalandhar, dated June 13, 2023, along with a confirmation email from the official bank email ID, was submitted, following which Welspun began supplying materials. Subsequently, another bank guarantee worth Rs.20 crore, allegedly issued by PNB, Baguiohati branch, West Bengal, dated January 15, 2024, was also submitted, further facilitating large-scale deliveries on credit.

The fraud came to light in May 2025 after a local newspaper in Madhya Pradesh reported cases involving fake bank guarantees linked to Tirth Gopicon Ltd. Suspecting foul play, Welspun attempted to invoke both guarantees. However, PNB’s Kolkata branch, in an email dated May 7, 2025, and the Jalandhar branch, in a mail dated May 8, 2025, categorically denied issuing any such guarantees, confirming that the documents were forged. This established that the accused had cheated Welspun by submitting fake bank guarantees to dishonestly obtain goods on credit.

Further investigation revealed that Maheshbhai Kumbhani had earlier submitted forged bank guarantees worth Rs.184 crore to the Madhya Pradesh Jal Nigam while securing government contracts. Following directions of the Madhya Pradesh High Court, the CBI registered a case and, after investigation, filed a chargesheet before the Special CBI Court in Indore, concluding that Kumbhani, along with agent Gaurav Pradeep Dhakad and bank official Govindchandra Hansda, had conspired to prepare and use forged bank guarantees.

EOW officials said the ongoing probe is focused on identifying the full conspiracy, including the role of bank officials from PNB’s Baguiohati and Jalandhar branches, tracing how and where the forged guarantees were created, and establishing whether more individuals were involved. Police have sought extended custodial remand of the accused to conduct a thorough interrogation, citing the serious nature of the offence, the large financial loss involved, and the need to uncover the wider network behind the sophisticated financial fraud.

Crime

SP leader Azam Khan sent to 14 days of judicial custody in money laundering case

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Samajwadi Party (SP) leader Mohammad Azam Khan was on Sunday sent to 14 days of judicial custody a day after being arrested by the Enforcement Directorate (ED) in connection with a Jauhar University-linked money laundering case.

The order was passed by the Ghaziabad MP-MLA Court, which directed that Khan will remain in judicial custody until November 13.

Speaking to reporters, the SP leaders’ lawyer, Danish Ali, said: “Today, Azam Khan has been remanded to judicial custody. We argued that since this is a 2019 case, the authorities could have taken action through a B-Warrant when he was already in custody. There has also been a violation of Section 19.”

“The ED has sought his custody to further interrogate him,” he added.

The Samajwadi Party leader’s arrest by the ED on Saturday came close to the provisional attachment of land and buildings belonging to Mohammad Ali Jauhar University in Uttar Pradesh’s Rampur district, valued at Rs 426.46 crore, in connection with the money laundering probe involving the Maulana Mohammad Ali Jauhar Trust, Azam Khan, and others.

The fresh trouble for Azam Khan came in the backdrop of a short-lived relief offered to him and his son Abdullah Khan by the Allahabad High Court, which suspended their sentence in the dual PAN card case and also granted them bail on Thursday.

In the money laundering case, the ED attached assets of the University that have a current estimated market value of around Rs 1,170 crore.

The university campus, located at Jauhar Nagar in Rampur’s Singhankhera village, is owned by the Maulana Mohammad Ali Jauhar Trust, which was founded and is controlled by Azam Khan, who also serves as the institution’s honorary Chancellor, said the ED.

The investigation stems from 26 FIRs registered at Azeem Nagar police station in Rampur, alleging that agricultural land belonging to farmers was forcibly acquired for the university.

The ED said enquiries by the district administration also found that nearly 34 acres of enemy property at Singhankhera village had allegedly been occupied for the university despite the cancellation of the land lease. The land has since been recovered by the Custodian of Enemy Property through the district administration.

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Crime

PGIMER Director visits six-year-old girl injured in Panchkula school incident, entire treatment to be provided free

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Postgraduate Institute of Medical Education and Research (PGIMER), Chandigarh, Director Professor Vivek Lal visited the six-year-old girl undergoing treatment there, following an alleged assault at a school in Panchkula on October 28.

During his visit, Professor Lal interacted with the treating doctors and enquired about the child’s health, medical condition and progress. He expressed deep concern over the unfortunate incident and assured the family that the institute would extend every possible assistance to ensure the child’s recovery.

Taking a special humanitarian initiative, the PGIMER Director ordered that the girl’s entire medical treatment be provided free of cost, with all expenses to be borne by the institute. In addition to covering all medical expenses, PGIMER has also provided her with a private room to ensure comfort, privacy, and appropriate care during her hospital stay.

Professor Lal said that the responsibility of PGIMER goes beyond providing medical treatment and includes standing alongside patients and their families during difficult times.

He emphasised that the institute is committed to ensuring the best possible medical care and all necessary support for the young patient and her family.

The six-year-old girl was brought to PGIMER with critical injuries after an alleged assault by an eight-year-old boy inside her classroom at a school in Panchkula on October 28. She was subsequently referred to the premier medical institute in Chandigarh for specialised treatment.

At present, the child is being treated by a multidisciplinary team of specialists, who are closely monitoring her condition and providing all necessary medical attention.

Following the Director’s visit, the institute has assured the family of continued medical and institutional support throughout the child’s treatment. According to officials, the Director will personally monitor the treatment and other care being given to the child.

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Crime

Law judges people based on crimes, not religion: NDA leaders hit out at SP’s Azam Khan

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NDA leaders on Sunday hit out at Samajwadi Party (SP) leader Azam Khan over his remarks about being “targeted” because of his religion and said that if the Enforcement Directorate found evidence, his arrest would be valid.

They added that even though he was bailed in a different matter, the authorities might have found evidence proving his guilt in other cases.

On October 31, the Enforcement Directorate arrested Samajwadi Party leader Azam Khan in a money laundering case in connection with the provisional attachment of land and buildings belonging to Mohammad Ali Jauhar University in Uttar Pradesh’s Rampur district, valued at Rs 426.46 crore.

Speaking to the reporters before being taken away by the ED, Khan said, “Is this the punishment for being a Muslim?”

The fresh trouble for Azam Khan came against the backdrop of a short-lived relief offered to him and his son Abdullah Khan by the Allahabad High Court by suspending their sentence in the dual PAN card case, granting them bail on Thursday.

Speaking to reporters, Uttar Pradesh Minister of State Narendra Kashyap said, “The law, Parliament and the Constitution do not judge a person based on religion. The law judges a person based on their crimes.”

“If Azam Khan committed a crime, and evidence was found that he has more property than his income, or that he committed forgery, physical violence, or theft, then the investigation is valid,” he added.

Speaking to MEDIA, Bihar BJP State President Sanjay Saraogi firmly said the law is equal for all. “Claiming that you are being attacked and oppressed because of your religion is not going to exempt you from the crimes you have committed,” he said.

“A person who built an empire of Rs. 1170 crores by oppressing the poor, orphans, and weak farmers is playing the victim today,” Saraogi said.

“There is no religion in money laundering and corruption. No matter if someone thinks of themselves as the biggest of strongmen, one who loots public money has a place only inside a prison,” he added.

JD(U) National General Secretary Shyam Rajak said that, “On the one hand, the judiciary decided to bail him; on the other hand, there might be more cases in which he was accused by the ED. It doesn’t mean that if he is bailed in one crime, the other ones will be dissolved too”

JD(U) National Spokesperson Rajiv Ranjan said that Azam Khan had a strong influence when the Samajwadi Party ruled the state. “He committed many financial crimes then,” Ranjan said, adding, “It is a good opportunity for Azam Khan to prove his innocence to the financial institutions of the state.”

Shiv Sena spokesperson Krishna Hegde said, “The ED will question him in multiple matters. Azam Khan has already spent time in jail; his son has been released, but he will have to face the ED.”

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