The Ahmedabad Police have launched an investigation after two men allegedly duped a city resident of ₹50 lakh by fabricating documents and securing a fraudulent MSME business loan. The accused, identified as Chintan Parmar and Sandeep Patel, are accused of creating a fake enterprise, manipulating bank records, and diverting funds through a bogus account.
According to the FIR filed by Prashant Joshi, a 28-year-old resident of New Ranip, the accused promised to set up a millet processing unit under the MSME loan scheme in August 2022. Parmar allegedly claimed he could secure financing “without mortgage” and convinced Joshi to share his Aadhaar, PAN card, and bank details, citing his experience in running a similar plant in Kathwada.
Forged Firm, False Quotes, and Vanished Accused
Investigators said Parmar created a fictitious firm named Mahalaxmi Enterprise using Joshi’s documents and opened a current account at Bank of Baroda. The accused then fabricated a ₹75.52 lakh machinery quotation from a firm called Pramukh Enterprise to obtain a ₹50 lakh MSME loan, which was directly disbursed to Pramukh Enterprise’s account in October 2022.
Joshi later discovered that no equipment had been delivered and that both accused had disappeared, leaving behind fake rental agreements and forged signatures in loan paperwork. The police have booked the duo under charges of cheating, forgery, and criminal breach of trust under relevant sections of the Bharatiya Nyaya Sanhita (BNS).
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A senior officer involved in the case said initial findings suggest that the accused may have used similar tactics to defraud multiple victims by creating fake MSME loan applications and coordinating with external banking intermediaries.
Police Trace Financial Trail, Examine Banking Links
The Economic Offences Wing (EOW) is now tracking the flow of the ₹50 lakh transferred to Pramukh Enterprise and verifying whether the entity existed beyond paper. Investigators are also reviewing the bank’s due diligence processes and possible lapses that enabled the fraudulent approval.
Officials believe the case reflects a growing misuse of MSME loan schemes, where fraudsters exploit digital documentation gaps and bank reliance on uploaded credentials. Authorities are expected to recommend tighter verification protocols, especially for small-scale business loans processed under fast-track schemes.