In a significant financial fraud case, the Dadar police have apprehended 36-year-old accountant Prajot Bhagwat for allegedly embezzling Rs.4.39 crore from the Rachana Sansad Academy in Prabhadevi, Mumbai. Employed on a contractual basis, Bhagwat reportedly confessed to losing the entire sum in the stock market.
Discovery of the Fraud
The misappropriation came to light on November 7, 2024, when the college administration noticed discrepancies in their financial records. An internal investigation revealed that since April 21, 2024, Bhagwat had been transferring funds from the institution’s bank accounts into his personal account. These funds primarily consisted of Tax Deducted at Source (TDS) amounts withheld from employees’ salaries, intended for remittance to the Income Tax Department.
Legal Actions Taken
Following the internal audit, college superintendent Suhas Pathak filed a formal complaint at the Dadar police station. The authorities registered the case under Sections 318(2) (cheating) and 314(4) (dishonest misappropriation of property) of the Bharatiya Nyaya Sanhita, 2023. Upon interrogation, Bhagwat failed to provide satisfactory explanations for the unauthorized transactions, leading to his arrest. He was subsequently presented before the metropolitan magistrate court in Dadar, which remanded him to police custody until February 10, 2025.
Investigation Insights
During questioning, Bhagwat claimed that he invested the embezzled funds in the stock market through a demat account, resulting in substantial losses. The police are currently verifying these assertions and are examining his financial activities to identify any additional bank accounts or assets where the misappropriated money might have been diverted.
Broader Implications
This incident highlights the critical importance of robust financial oversight within educational institutions. Regular audits, stringent internal controls, and vigilant monitoring of financial transactions are essential to prevent such fraudulent activities. The case also underscores the risks associated with individual control over significant financial processes without adequate checks and balances.
Conclusion
The arrest of Prajot Bhagwat serves as a stark reminder of the vulnerabilities that can exist within organizational financial systems. It emphasizes the need for institutions to implement comprehensive financial management practices to safeguard against internal fraud and ensure the integrity of their financial operations.
