According to a media report, the Economic Offences Wing (EOW) of the Mumbai Police has apprehended Anilbabu Karlapudi, a key employee of DSV Air and Sea – a subsidiary unit affiliated with the renowned global transport and logistics company. Karlapudi stands accused of defrauding his employer to the staggering amount of INR 14.41 crore. Logistics Insider has independently verified the information contained in the media report with a highly placed source in the company.
The logistics firm, with multiple offices across India, is now grappling with the aftermath of this scandal. The accused, Karlapudi, who hails from Telangana, was taken into custody last week and subsequently transported to Mumbai on Monday under transit remand. The arrest follows allegations that Karlapudi orchestrated the fraud by submitting counterfeit invoices on behalf of various bogus companies, falsely claiming to provide services to the logistics company.
Sandeep Tatke, the Director of Finance (CFO) at DSV Air and Sea Pvt. Ltd, the Indian subsidiary of the Danish giant De Sammensluttede Vognmænd, lodged the complaint leading to Karlapudi’s arrest. The fraudulent activities came to light a few months ago when Tatke, during routine inspection work, detected suspicious transactions linked to Karlapudi, the manager of the company’s Hyderabad branch.
Upon closer scrutiny of the work receipts processed by the Hyderabad branch, it was revealed that the listed services were never availed from the associated companies, as detailed in the FIR. Further investigation exposed the issuance of invoices in the name of three non-existent companies, with no actual goods transported.
These fraudulent receipts were logged into the system using Karlapudi’s credentials. The FIR disclosed that one such fictitious company, Artemis Solution, claimed to have an office in Mulund, Mumbai, but no such entity was found to exist.
Upon seeking information from Karlapudi regarding the services provided by seven additional companies, Tatke encountered further discrepancies. The subsequent inquiry unveiled a staggering total of INR 14.41 crore in fraudulent activities, as confessed by Karlapudi in his statement to the police. It was revealed that he fabricated invoices for these vendor companies, none of which existed.
Following Tatke’s complaint, the EOW initiated legal proceedings against Karlapudi in October of this year. EOW officials successfully apprehended Karlapudi in Hyderabad and transported him to Mumbai for further legal proceedings.
This incident sheds light on the broader issue of fraudulent activities within the supply chain and logistics sector. Recent cases indicate a disturbing trend of unscrupulous activities, emphasizing the urgent need for increased vigilance and stricter measures within the industry.
The EOW’s swift action following Tatke’s complaint highlights the commitment to rooting out such fraudulent practices. As the investigation unfolds, the logistics industry faces a crucial moment, prompting a reevaluation of security measures to prevent similar incidents in the future.
Logistics Insider Magazine: December issue 2023