After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

The Enforcement Directorate (ED) has uncovered a massive cache of unaccounted wealth during a series of searches linked to an alleged illegal mining and money laundering network in Odisha, officials said on Friday.

According to sources, the Bhubaneswar Zonal Office of the ED conducted coordinated search operations under the Prevention of Money Laundering Act (PMLA), 2002, recovering an almirah packed with cash worth several crores of rupees, along with luxury vehicles and key documents connected to mining leases and immovable properties.

The searches form part of an ongoing investigation into suspected large-scale laundering of proceeds generated from illegal mining activities across the state.

Multiple Locations Searched Under PMLA

The agency carried out searches at several premises associated with individuals and business entities believed to be part of a wider illegal mining syndicate. Acting under Section 17 of the PMLA, which authorizes search and seizure of assets suspected to be proceeds of crime, investigators reportedly seized:

• Large quantities of liquid cash stored in an almirah
• High-end luxury vehicles with unclear or concealed ownership details
• Documents related to land, real estate holdings, and financial transactions
• Mining lease agreements and records indicating possible regulatory breaches

Officials believe these materials may offer crucial evidence of how illicit mining revenues were generated, layered, and concealed.

Mining Proceeds Allegedly Laundered Through Cash and Assets

Investigators suspect that illegal extraction and transportation of minerals were carried out in violation of environmental regulations, mining laws, and lease conditions. The profits from these activities were allegedly converted into cash and assets to avoid detection by financial regulators.

The recovery of substantial physical cash—rather than funds routed through formal banking channels—has heightened concerns of deliberate attempts to bypass financial oversight and anti-money laundering controls.

The ED is examining whether the seized funds originated directly from illegal mining operations or were routed through shell entities, contractors, or benami arrangements.

Luxury Vehicles and Properties Under Investigation

Among the significant finds were luxury vehicles believed to have been registered under proxy names or complex ownership structures, a tactic frequently used to obscure the identity of the real beneficiaries.

Property-related documents and mining agreements seized during the raids are now under detailed scrutiny to determine:

• Whether mining leases were fraudulently obtained, misused, or unlawfully extended
• Whether real estate purchases were financed using proceeds of crime
• The possible involvement of public officials, facilitators, or intermediaries

Officials said forensic audits and document verification exercises will be carried out to trace the complete money trail.

Part of Wider Push Against Illegal Mining

Odisha, one of India’s most mineral-rich states, has long faced allegations of illegal mining, environmental damage, and loss of public revenue. In recent years, central agencies have stepped up action against mining syndicates where violations overlap with financial crimes and money laundering.

Under the PMLA framework, assets identified as proceeds of crime can be provisionally attached, followed by adjudication and eventual confiscation if the accused are convicted.

Investigation Ongoing

ED sources indicated that further questioning and summons are likely as investigators analyze the seized cash, documents, and digital records. The agency may also move to provisionally attach properties and vehicles linked to the suspected laundering network.

No arrests have been announced so far, and officials emphasized that the probe is still at a critical evidence-gathering stage.

Mumbai: In a significant development in the long-running Winsome Diamonds and Jewelleries Ltd. (WDJL) bank fraud case, a Mumbai court has removed allegations of public corruption from the prosecution, narrowing the case to charges of cheating and criminal conspiracy involving private parties. The move follows the Central Bureau of Investigation’s (CBI) acknowledgment that its probe found no evidence implicating bank officials or other public servants.

Court Orders Transfer of Case

On Monday, a special CBI court in Mumbai ordered that the ₹214.35-crore fraud case be transferred from a sessions court to a metropolitan magistrate court at Esplanade. Special Judge Dr. J.P. Darekar accepted the CBI’s submission that provisions of the Prevention of Corruption Act were no longer applicable, as the investigation did not substantiate claims of official misconduct.

With the corruption charges dropped, the sessions court directed that the first information report (FIR) and all related records be forwarded to the chief metropolitan magistrate, who will now oversee further proceedings.

How the Case Began

The case was registered by the CBI on April 4, 2017, based on a complaint from a senior official of Vijaya Bank. The complaint alleged that Winsome Diamonds and its promoters misused eight standby letters of credit issued for overseas bullion transactions, resulting in losses of more than ₹214 crore to the bank.

This FIR was one of several cases filed against WDJL. Investigators have previously stated that the company and its associated entities caused cumulative losses of approximately ₹4,627 crore to multiple public sector banks through similar transactions.

Allegations of Complex Financial Maneuvering

According to investigators, the alleged fraud took place during 2012–13, when credit facilities were availed under the pretext of importing gold and diamonds. Instead of legitimate trade, the funds were allegedly routed through a network of 13 companies based in the United Arab Emirates that were said to be under the company’s control.

Authorities have alleged that the proceeds were layered through multiple international bank accounts and partially parked in entities linked to family members of WDJL promoter Jatin Mehta, who has been described by investigators as a fugitive. Foreign banking channels, including London branches of international banks, were cited in the FIR as part of the alleged transaction trail.

What Happens Next

With the corruption element removed, the magistrate court will now consider whether the evidence supports charges of cheating and criminal conspiracy under the Indian Penal Code against the company, its promoters and directors. The court will decide on taking cognisance of the charges and the next procedural steps in the trial.

The CBI has clarified that while no case could be made out against public officials, the investigation yielded sufficient material to continue prosecution against the remaining accused. The court’s order represents a recalibration of the case rather than its conclusion, ensuring that the alleged misuse of bank credit will still be examined through the judicial process.