Mumbai Fraud Case: Former Provogue Director Files FIR Alleging ₹90-Crore Scam
Mumbai, Nov 19: Nikhil Chaturvedi, the former Director of Provogue India Ltd., has filed a complaint alleging a massive financial fraud during the company’s insolvency and liquidation proceedings, which took place from September 25, 2018, to April 25, 2023.
FIR Registered Against Five Accused
According to the complaint, the Amboli Police have registered an FIR against Amit Gupta, Samir Khandelwal, Rakesh Rawat, Arpit Khandelwal, and Plutus Investment and Holding Pvt. Ltd. under various sections of the Indian Penal Code (IPC).
Allegation of Undervaluation and Loss to Company
The complaint states that the accused individuals allegedly conspired to undervalue Provogue (India) Ltd. and sell it at a significantly reduced price to Plutus Investment and Holding Pvt. Ltd. Amit Gupta, who was appointed by the National Company Law Tribunal (NCLT) as the Resolution Professional and later as the Liquidator, allegedly failed to recover outstanding receivables of ₹32.71 crore during the liquidation process.
Claims of Concealed Assets and Delayed Auction
The complaint further claims that assets belonging to Elite Team Hong Kong Ltd., a 100% subsidiary of Provogue, were intentionally concealed under the “Other Assets” category in the valuation report. It is alleged that the auction of the corporate debtor was deliberately delayed by nearly two years, causing a wrongful loss of approximately ₹90 crore to Provogue (India) Ltd.
The case has been registered, and further investigation is underway by the Economic Offences Wing (EOW). This high-profile case highlights the complexities and potential for fraud in the insolvency and liquidation processes, emphasizing the need for stringent oversight and regulation in such proceedings.
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