The Ahmedabad Cyber Crime Branch has arrested three men for allegedly defrauding a city-based company of ₹9.60 lakh by impersonating officials of Ahmedabad Civil Hospital and the Ahmedabad Municipal Corporation (AMC), using AI-generated forged documents and fabricated government procurement procedures to push a non-existent supply contract. The arrests were made on 4 August, with investigators identifying the accused as residents of Ahmedabad originally hailing from Rajasthan, Uttar Pradesh, and Madhya Pradesh.

How the Fraud Was Executed

The gang targeted a company manufacturing bio-green plastic bags, falsely claiming that Ahmedabad Civil Hospital required 2,000 disposable bags and that a purchase order would be processed through the government's procurement system. To establish credibility, the accused allegedly sent forged Civil Hospital employee identity cards, fake purchase orders, tender forms, and official-looking documents bearing fabricated signatures and seals.

The group also created a fake Civil Hospital email account and conducted video calls via Google Meet while posing as hospital officials. The complainant, a resident of the Satellite area of Ahmedabad, was then persuaded to transfer money under the pretext of obtaining mandatory certifications — including ZED, CPCP, OEM on the Government e-Marketplace (GeM) portal and NSIC certificates — along with processing charges. In total, the company transferred ₹9.60 lakh before discovering the deception.

The Accused and Their Roles

Investigators arrested Rahul Sharma, 29, originally from Alwar, Rajasthan; Vipul Singh Tomar, 30, a native of Mainpuri, Uttar Pradesh; and Aman Kushwaha, 26, from Bhind, Madhya Pradesh. All three had been living in Ahmedabad.

Police identified Rahul Sharma as the alleged mastermind. According to investigators, he devised the scheme, arranged SIM cards and bank accounts, impersonated a Civil Hospital purchase department official named Rajesh Rawal, and allegedly used ChatGPT to generate fake procurement orders, confirmation letters, and forged identity cards. He also reportedly visited the complainant's office in person while posing as a hospital employee.

Of the total amount defrauded, ₹2.15 lakh was transferred into Rahul's account, while ₹7.45 lakh went into Vipul Singh Tomar's account. Investigators allege Tomar withdrew the funds via cheques, retained a commission, and passed the remainder to Rahul through co-accused Aman Kushwaha. Kushwaha allegedly posed as an AMC official named Shailesh Singh and communicated with the complainant via phone calls and WhatsApp, claiming he could facilitate the required government certifications.

What the Police Said

ACP Hardik Makadia said the main accused had previously worked for approximately three years with consultancy firms assisting businesses with government procurement through platforms such as GeM and other e-procurement portals. 'He had detailed knowledge of government procurement procedures and the certificates required. Around three months ago, he came up with the idea of contacting companies and cheating them,' Makadia said.

The ACP added that the accused searched online for manufacturers of products such as green plastic bags, identified established companies, and approached them through WhatsApp. 'He used ChatGPT to prepare fake procurement orders, confirmation letters and other documents, created fake identity cards and then cheated the victims,' he said.

Wider Pattern of Fraud

Preliminary investigation suggests the group defrauded at least six victims using the same modus operandi. Beyond the present case, investigators have linked the accused to a separate fraud of over ₹18.31 lakh reported at Changodar Police Station, where a case has been registered under Section 318(2) of the Bharatiya Nyaya Sanhita (2023) and Section 66(D) of the Information Technology Act. One accused also has a prior case at Rakhial Police Station under Section 318(4) of the Bharatiya Nyaya Sanhita and Sections 66(C) and 66(D) of the IT Act. Investigators further suspect the gang was involved in additional frauds of around ₹5 lakh involving other victims, with investigation ongoing.

This case underscores a growing pattern of AI-assisted procurement fraud targeting small and mid-sized manufacturers registered on government portals — a threat that enforcement agencies are only beginning to map.