FIR against company for fund misappropriation

The Economic Offences Wing (EOW) of Delhi Police has registered an FIR against directors of a company — GeneStore India Private Limited on charges of alleged misappropriation of funds, cheating and criminal conspiracy, said an officer on Sunday.

GeneStore had promised to provide “most affordable COVID-19 testing kits” in India.

Complainant Vineet Singh Chauhan, who had sales rights in the firm, said the company was misrepresenting manufacturing expenses. He said even after getting feedback from the laboratories, GeneStore continued to sell bad quality testing kits through a diagnostic, endangering public health.

‘Forced to pay labs’

They forced complainant to pay the labs to accept items as they were doing, which Mr. Chauhan rejected.

The FIR stated that the firm cheated the complainant of ₹1.5 lakh loan/investment with fraudulent intent for administrative cost in personal account by claiming certain promised benefits such as equity.Later, he was forced to accept less margin once all work was done.

The company used a diagnostics distributor to book sales in cash and hide actual sales to avoid tax and launder money to France.

The police said there are allegations of false declaration of orders and concealment of actual sales that was done by the company.

The case is under investigation. “We had received a complaint regarding the matter in October last year,” the officer added.

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Printable version | May 16, 2021 9:44:41 AM |

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