Gujarat: Two arrested for cheating 19 chemical traders

Ahmedabad, Aug 20 (AHN) The Economic Offences Wing (EOW) of the Ahmedabad Crime Branch has arrested two men accused of cheating 19 chemical traders by allegedly purchasing colour dyes and chemicals on credit and then withholding payments, with the outstanding amount cited in the police case at Rs 16.73 crore.

Mohit Sahani, 51, proprietor of Elokogico Chemical Industries, was apprehended in Jaipur, while Kalpesh Patel, 52, was arrested in Ahmedabad, the EOW said on Thursday.

The case was registered at the DCB Police Station under Sections 316(2) and 316(5) of the Bharatiya Nyaya Sanhita (BNS) on a complaint by Mukesh Dave, 60, a chemical trader based in Ahmedabad.

According to the complaint, Sahani purchased colour dyes and chemicals for his company from Kiri Industries Limited and Lonsen Kiri Chemical Industries Limited between July 2 and November 4, 2025.

The police said the investigation subsequently found that 19 traders had allegedly supplied goods to Sahani and were left with outstanding payments totalling Rs 16,73,84,760.

The complaint alleges that goods worth around Rs five crore were sold to Patel at about half their value, while payments to the traders remained pending.

ACP (EOW) Manoj Chavda said that Sahani had rented an office in Vapi and maintained a godown in Narol.

"He approached several chemical traders and initially established credibility by making timely payments for smaller orders. Once trust was established, he placed large orders over six months with multiple traders,” Chavda said.

The accused allegedly made partial payments after receiving the consignments and withheld the remaining amounts.

Police said he subsequently shut his office and godown and absconded, following which the case was registered.

The EOW said Sahani, who was residing in Vaishali Nagar in Jaipur, was arrested there, while Patel, who resides in the Shela-Bopal area of Ahmedabad, was also apprehended.

Investigators are continuing their probe into the alleged transactions and the role of the two accused.