Mumbai: EOW books 5 firms for siphoning ₹5 crore from Labour Board

An assistant labour commissioner has lodged a complaint with the economic offences wing (EOW) of the Mumbai Police against five firms allegedly involved in siphoning off ₹5 crore from the board’s bank account using bogus cheques and forged signatures.

An assistant labour commissioner has lodged a complaint with the economic offences wing (EOW) of the Mumbai Police against five firms allegedly involved in siphoning off ₹5 crore from the board’s bank account using bogus cheques and forged signatures. Bank officials are also suspected to be involved in the alleged fraud.

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The complainant, assistant labour commissioner Ashok Doke, 53, is holding additional charge of president of the Goods Clearing and Forwarding Establishment Labour Board which looks after the overall welfare and regulation of unsecured labour workers. Labour workers’ provident fund and other funds meant for their welfare are deposited with the board which, in turn, has deposited the same in a saving account with Bank of Baroda.

Last month when board’s accountant and his assistant went to the bank’s Masjid Bundar branch to get the passbook updated, they found out that ₹5.06 crore had been deducted from the account. “Further probe revealed that the amount was transferred from the account on different occasions between January 7 and March 2. The unauthorised transactions were carried out using cheques,” said an EOW officer.

The board member informed the bank that the cheque book of the said account is at the board’s office and the board as not issued any cheques to anyone. This indicated that bogus cheques were used for the fraud, the officer added.

A total of eight cheques were used, and with the help of forged signatures, the money was transferred to different bank accounts of Bank of Baroda in Madhya Pradesh and Chattisgarh, the complaint states.

The funds are transferred in bank accounts belonging to Rashid Khan Constructions, Arunoday Shikshan Samiti, Dongergaon, Bhilayi, Maharshi Enterprises General Suppliers, Balaghat, Jayshakti Constructions and Kaushalendra Dekate, Balaghat. All these have been named as accused in the FIR, a copy of which is with HT.

The complainant alleged that the bank’s branch manager and other staff did not work as per due procedure and failed to verify or carry out authenticity checks and processed the cheques.

“We have sought details of the fraudulent transactions from the bank as well as details of the beneficiary account holders, details of the bank personnel who were involved in processing the duplicate cheques having forged signatures,” said an EOW officer.

The police have booked the five beneficiary account holders under relevant sections of the Indian Penal Code.

The case was first registered with Pydhonie police and later got transferred to EOW considering its complex nature. No arrest has been made yet.