Mumbai EOW Investigates Rs 90 Crore Fraud at Provogue India: Former Director and Associates Charged with Asset Undervaluation Scheme

The criminal activities took place over a five-year period from 2018 to 2023.

Mumbai:

Mumbai police's Economic Offences Wing (EOW) has registered a case against four individuals, including a former director and an ex-employee of Provogue India Ltd, for allegedly defrauding the company of Rs 90 crore, according to officials.

Provogue India Ltd, headquartered in Mumbai, is known for manufacturing and retailing a diverse range of products including apparel for men and women, accessories, and luggage items.

The accused individuals have been identified as Rakesh Rawat (former director), Sameer Khandelwal (former employee), Amit Gupta (resolution professional), Arpit Khandelwal (new purchaser), along with Plutus Investments and Holding Ltd and other parties, an official stated on Wednesday.

According to investigators, the accused individuals allegedly conspired to undervalue the company's assets and deliberately protracted the auction process by two years. This strategy was reportedly implemented to decrease the market value of the company, enabling Khandelwal to acquire it at a reduced price.

Officials further revealed that the accused deliberately failed to collect receivable amounts from clients (debtors) for their personal financial gain.

The case was initiated following a complaint filed by 55-year-old Nikhil Chaturvedi, who previously served as the managing director of Provogue India Ltd.

The fraudulent activities reportedly occurred between 2018 and 2023.

The accused have been charged with cheating, criminal breach of trust, and criminal conspiracy. Officials confirmed that investigations into the matter are currently ongoing.