Pramesh S Jain
The Marathahalli police have registered an FIR against former Chief Financial Officer of city based Gameskraft Technologies, for misusing company’s funds for personal equity and derivatives trading (“Equity F&O Trading”) to the tune of over ₹270 crores over the past 3 to 4 years.
Based on the complaint filed by,Gulshan Yadav,Asst. Vice President,the police on last Tuesday registered a case charging the accused Ramesh Prabhu,under section 316 (criminal breach of trust),318 (cheating ), 335 ( making a false document or false electronic record), 344 (Falsification of Accounts) and section 336 (forgery) of BNS for further investigations.
The accused according to the complaint,the incident came to light in March,5 this year when the accused through email dated addressed to the Complainant Company voluntarily admitted that,over the past 3 to 4 years,he had misused Company funds for personal equity and derivatives trading (“Equity F&O Trading”).
He further stated that the total loss from such Equity F&O Trading as per his estimate exceeded ₹250 crore.
A reading of the said email also makes it clear that these activities were carried out without any disclosure or approval.
The accused stated that he would take full responsibility for his conduct,including for breaching the trust reposed to him in his capacity as Group Chief Financial Officer of the Complainant Company and claimed that none of the current or former employees of the Complainant Company were aware of his conduct,Mr.Yadav stated in his complaint .
Based on the email confession,the company carried out a comprehensive fact-finding review and found that the accused had executed unauthorised financial transactions and were wrongly recorded as“investments in the Company’s books of accounts.
In view of the above,the Company was required to write-off INR 270.43 crore in its financial statement for the Financial Year 2024-25.The Company discovered that these transactions were carried out in an unauthorised and unilateral manner.
Further probe revealed that the accused closely controlled this particular account and diverted/misappropriated funds through this account for his personal use as he is the authorised to use it solely .
Further accused had transferred the funds to his personal bank account while the same were falsely reflected as ‘investments in the Complainant Company’s books of accounts, the complainant stated .
The accused had also created fake mutual fund statements in support of his claim that he had made investments using the Complainant Company’s fund to cover up the fraud .
A senior police officer said that considering the magnitude,the case will be transferred to the Criminal Investigation Department for a detailed probe .
