Gujarat EOW arrests two in ₹16.73 crore chemical traders fraud
Synopsis
A calculated credit fraud targeting Gujarat's chemical trade — the accused allegedly built supplier trust with small, timely payments before placing bulk orders worth crores and vanishing. With 19 traders defrauded and ₹16.73 crore outstanding, the Ahmedabad EOW's arrests of Mohit Sahani in Jaipur and Kalpesh Patel in Ahmedabad expose a textbook confidence-fraud playbook in an industry that runs heavily on credit.
Key Takeaways
The Ahmedabad EOW arrested Mohit Sahani, 51 , and Kalpesh Patel, 52 , on 20 August for allegedly defrauding chemical traders.
A total of 19 chemical traders were allegedly cheated, with outstanding dues of ₹16,73,84,760 according to the police case.
Sahani allegedly bought colour dyes and chemicals on credit from 2 July to 4 November 2025 , then withheld payments.
Goods worth approximately ₹5 crore were allegedly sold to Patel at roughly half their market value.
The case is registered under Sections 316(2) and 316(5) of the Bharatiya Nyaya Sanhita (BNS) at DCB Police Station .
EOW investigations are ongoing; further disclosures are expected.
The Economic Offences Wing (EOW) of the Ahmedabad Crime Branch has arrested two men accused of defrauding 19 chemical traders of ₹16.73 crore by procuring colour dyes and chemicals on credit and subsequently withholding payments. The arrests were made on Thursday, 20 August, following a complaint registered at the DCB Police Station under Sections 316(2) and 316(5) of the Bharatiya Nyaya Sanhita (BNS).
The Accused and Their Arrest
Mohit Sahani, 51, proprietor of Elokogico Chemical Industries, was apprehended in Jaipur, where he had been residing in the Vaishali Nagar locality. His alleged associate, Kalpesh Patel, 52, was arrested from the Shela-Bopal area of Ahmedabad. The case was initiated on a complaint filed by Mukesh Dave, 60, a chemical trader based in Ahmedabad.
How the Alleged Fraud Unfolded
According to investigators, Sahani purchased colour dyes and chemicals from Kiri Industries Limited and Lonsen Kiri Chemical Industries Limited between 2 July and 4 November 2025. ACP (EOW) Manoj Chavda said 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 consignments, then withheld the remaining amounts before shutting his office and godown and absconding.
Scale of the Alleged Cheating
Police investigations found that 19 traders in total had supplied goods to Sahani, leaving outstanding dues of ₹16,73,84,760, according to the police case. Separately, the complaint alleges that goods worth approximately ₹5 crore were sold to Patel at roughly half their market value, while payments to the original suppliers remained pending.
What Investigators Say
The EOW said the probe into the alleged transactions and the precise roles of both accused is ongoing. This case follows a pattern seen in credit-based commodity fraud, where perpetrators build supplier trust through initial compliance before scaling up orders and defaulting. The involvement of a second accused — Patel — as an alleged buyer of discounted goods adds a layer of alleged conspiracy to the case that investigators are working to establish.
Further arrests or disclosures are possible as the EOW widens its inquiry into the supply chain and financial trail.
Point of View
Textiles, agri-inputs — remain acutely vulnerable to confidence fraud, where the modus operandi is almost always identical: build trust, scale up, default, disappear. What is notable here is the alleged secondary layer — goods reportedly offloaded to a second accused at half price — suggesting a pre-planned liquidation strategy rather than opportunistic default. Gujarat's chemical trade cluster, centred around Vapi and Ahmedabad, processes enormous volumes on informal credit, and enforcement has historically lagged the pace of such schemes. The EOW's cross-state arrest of Sahani from Jaipur signals improving inter-state coordination, but the real deterrent would be faster adjudication of economic offence cases, which currently languish for years in courts.
NationPress
21 Aug 2026
Frequently Asked Questions
Who were arrested by the Ahmedabad EOW in the chemical traders fraud case?
The Ahmedabad Economic Offences Wing arrested Mohit Sahani, 51, proprietor of Elokogico Chemical Industries, from Jaipur, and Kalpesh Patel, 52, from Ahmedabad's Shela-Bopal area on 20 August. Both are accused of defrauding 19 chemical traders of ₹16.73 crore.
How did the accused allegedly carry out the fraud?
According to police, Mohit Sahani initially made timely payments for small orders to build credibility with suppliers, then placed large bulk orders over six months, made only partial payments after receiving goods, and eventually shut his office and godown and absconded. Kalpesh Patel allegedly purchased goods worth ₹5 crore at roughly half their value.
How many traders were affected and what is the total amount involved?
According to the police case, 19 chemical traders were allegedly defrauded, with outstanding dues totalling ₹16,73,84,760. The complaint was filed by Ahmedabad-based trader Mukesh Dave, 60.
Under which legal sections was the case registered?
The case was registered at DCB Police Station under Sections 316(2) and 316(5) of the Bharatiya Nyaya Sanhita (BNS), which relate to cheating and fraud offences.
What is the current status of the investigation?
The EOW has arrested both accused and the investigation is ongoing. Authorities are probing the full scope of alleged transactions and the precise role of each accused, with further developments expected as the financial trail is examined.
