Cops raid Timber Merchants Assn, office-bearers booked for fraud

Nagpur: City’s timber merchants’ fraternity was rattled on Wednesday by crime branch’s Economic Offences Wing’s (EOW) unprecedented search operations conducted simultaneously at eight places in a forgery and fraud case. Almost a dozen government employees were used as police ‘panchas’ (witnesses) in the operation for the first time.EOW is investigating an alleged forgery and embezzlement of funds by Nagpur Timber Merchants’ Association’s (NTMA) office bearers between 2006 and 2012. The action sent a strong message across the traders’ community. Nine office-bearers, all of whom have obtained anticipatory bail, allegedly siphoned off more than Rs 61 lakh from the association’s funds on different occasions. Homes of eight accused and office of NTMA at Lakadganj were searched.A new development in the search operation was the inclusion of government employees as ‘panchas’ or police witnesses following a Government Resolution issued on May 12 this year. They were from different departments like city survey, Sales Tax, irrigation department, Zilla Parishad and others. The GR has guidelines calling for involving government employees as panchas during search and seizure operations in offences that carry seven or more years’ imprisonment in order to improve conviction rates. The search operation spearheaded by assistant police officer Pradeep Lande, formerly with CBI and now in EOW, under supervision of Addl CP Shrikant Tarwade, DCP Deepali Masirkar and ACP Nilesh Raut. “Crime branch had started pursuing the case after high court issued directions to expedite the process,” said an officer of crime branch.Residences of Prabhudas Patel, president of NTMA, at Satnami Nagar and Jayantilal Patel, secretary, staying at AVG Layout also in Satnami Nagar were searched during the operation. Searches were also conducted at the homes of Laddabhai Patel, vice-president, NTMA, at Ghat Road, Govindbhai Patel, treasurer, living at Jagjivanram Nagar, Shankarlal Patel, member, staying at Sonba Nagar and that of Lakhamshi Patel, member, at Jalaram Nagar. Residence of another member Dinesh Patel at Sonba Nagar was also searched. Police stated that while some office bearers have been replaced, others managed to continue. EOW sources claimed several incriminating documents, records, testimonials and others were found during the searches. Some crucial hand-written notes, rough calculations, registers, receipt books and some other materials were also found. It is learnt that one of the members of NTMA Hasmukh Patel had registered an offence against the office-bearers and some members in 2011 at Lakadganj police station for alleged misappropriation of funds. The office-bearers and members were slapped with various sections of cheating, forgery and criminal breach of trust and others under Indian Penal Code (IPC) after they had fraudulently transferred around Rs 42.30 lakhs to a partnership firm from the account of NTMA. They later tried to show on record that they had purchased a 30,000 sq foot property at Kapsi on Bhandara road using the partnership fund.In 2012, there was another case registered against the office bearers at Lakadganj police station following a complaint by another member Maganlal Patel. The case was registered following a magistrate’s order. This second offence was registered on the basis of an audit report and conclusions drawn by charity commissioner that there was a misappropriation to the tune of Rs 19 lakh.The probe into the so-called forgeries were, however, stalled after High court issued a stay in favour of the petitioner merchant association. The stay was vacated in March 2015 by the high court which had also issued a direction to combine the offences and chargesheet the case within three months’.WHAT IS THE CASE The case is of fraudulent use of Nagpur Timber Merchant Association’s (NTMA) money for personal gain of the office-bearers and some members who formed a partnership firm, Krishnakrupa Developers, to siphon off sizable amounts from Association. The office-bearers transferred Rs 42.30 lakh from NTMA to their firm and started scouting for land in Kapsi on Bhandara Road. They purchased around 10 acres land using the money but transferred only 30,000 sq feet in the name of NTMA.An audit by charity commissioner also showed a misuse of Rs 19 lakh by the office bearers. There was also mismanagement of funds, deposits, bank accounts and administrative expenses that the complainants had brought to fore.NUMBER GAME:How many accused: 9How many places search was conducted: 8How many personnel participated in raids: 28Numbers of govt officers called as witness: 12Numbers of private witnesses: 4