Surat: Udhna police registered a case against an accountant of a bag manufacturing firm for allegedly siphoning off ₹1.80 crore by creating a separate firm using a brand name identical to his employer’s business.The complainant Mohammad Sehzad Alam, owns ‘Sitara Bag’ in Udyog Nagar in Udhna and sells his products online. His firm employs around 25 people.In 2022, Alam hired Manish Pathade as a sales executive. Impressed by his performance, Alam gradually entrusted him with additional responsibilities, including order management, product dispatch and accounting.Police said that after the company began suffering financial losses over the past year, Alam conducted a review of the firm’s accounts.
CJP Jantar Mantar Protest Updates
During the audit, he discovered that Pathade had established his own company, Manvansh Trades, obtained a GST registration and opened a bank account with Tamilnad Mercantile Bank.Investigators allege that Pathade created a similar brand named ‘Sitara Bags‘ and listed products online at lower prices. Customers were allegedly attracted by the cheaper rates and placed orders through his platform. However, the products were supplied from Alam‘s manufacturing unit, while the payments were deposited into Pathade’s firm’s bank account.The complaint stated that over the past three years, Pathade allegedly diverted around ₹1.80 crore through this arrangement.When confronted, Pathade allegedly admitted his actions in the presence of family members. He disclosed that he had purchased a house in Crystal Homes in Dindoli, land in Navsari, gold for his family, a hatchback car and an electric two-wheeler using the misappropriated funds.According to the complaint, Pathade signed a written agreement promising to repay the amount and returned Rs16.17 lakh after selling some of the assets, including gold, car and two-wheeler. However, he allegedly failed to repay the remaining amount despite repeated assurances.After receiving no further payment, Alam approached Udhna police, who registered a case against Pathade. Police said further investigations are underway.
