Firm’s ex-director held for Rs 4.5 crore scam | india | Hindustan Times
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Firm’s ex-director held for Rs 4.5 crore scam

india Updated: Feb 13, 2009 01:17 IST
Shahkar Abidi

The former director of a closed firm was on Thursday arrested for siphoning off about Rs 4.5 crore meant for repaying debts.

The accused, Vinod K. Faria (50), was one of the five directors of Genelec Ltd, a plastic tool-making company in Vile Parle. The company was dissolved in 1992 and sold to NV’s New Ground Technologies for Rs 6.95 crore in 2006.

Faria, who looked after the daily administrative activities of the company, was assigned the responsibility of paying back a debt of over Rs 4.48 crore to a Kolkata-based bank out of the money received from the sold-off.

However, between February and December 2007, Faria, along with another accomplice, issued 15 cheques to parties not connected with the business. “The accused siphoned off the amount through these dummy accounts and made a fortune out of it,” said Inspector (Investigation) Ravindra Patil. The accused used the money to purchase properties in the city and in his hometown in Kutch.

Arvind Shah, another ex-director and the complainant in the case, in his statement to the police said Faria had threatened to kill him when he sought an explanation from the latter last year.

Shah approached the metropolitan court in Andheri after the Vile Parle police station failed to take any action against the accused. The court, after a few hearings, asked the Andheri police to investigate the case earlier this year.

The police are investigating whether the employees of the banks, where the cheques were submitted, were involved in the scam. He has been remanded in police custody for 14 days.