The Economic Offences Wing (EOW) of the Mumbai Police has registered a case against four individuals — including a former director and an ex-employee of Provogue India Ltd — for allegedly cheating the company of Rs. 90 crore (US $ 10.14 million), officials said on Wednesday.
According to officials, the accused include a former director, a former employee, a resolution professional (RP), a new purchaser and others. The development follows Provogue India Ltd entering insolvency proceedings, during which one of the accused was appointed as the RP, responsible for overseeing the restructuring process and managing the company’s affairs until a resolution could be achieved.
They allegedly conspired to undervalue the company’s assets and intentionally delay the auction process by two years. Investigators stated that this delay was aimed at reducing the company’s market value, allowing one of the accused to purchase the company at a significantly depressed price.
The complaint further alleges that the accused failed to conduct valuation exercises with due diligence and did not preserve essential documentation, actions that would amount to a breach of the RP’s statutory duties.
Officials further reported that the accused failed to collect receivables from clients, or debtors, for personal gain. A complaint was lodged in the matter by a former managing director of Provogue India Ltd. The offences are believed to have occurred between 2018 and 2023. Police said the individuals have been booked under charges of cheating, criminal breach of trust and criminal conspiracy. Officials confirmed that investigators are examining transactions undertaken during both the insolvency and liquidation phases.
Provogue India Ltd, headquartered in Mumbai, is known for its nationwide presence through retail stores, franchise outlets and online platforms. The company has historically catered to urban and semi-urban markets across India. Its product portfolio includes men’s and women’s apparel, fashion accessories, footwear, bags and luggage.
