CBI Court Jails Three for ₹67 Lakh ONGC Fraud: 3-Year Sentence for Fake Goods Dispatch Scam

A CBI court in Ahmedabad sentenced three individuals to three years in prison for cheating ONGC of ₹67 lakh through a fake goods dispatch scam. The conviction follows a detailed CBI investigation and highlights strict action against corporate fraud.

Post Published By: Karan Sharma

Updated : 10 December 2025, 2:59 PM IST

CBI Court Sentences Three in ONGC Cheating Case

New Delhi: The Central Bureau of Investigation (CBI) registered a case on 22 June 2011 against National Machine Tools proprietor Atul Naranbhai Panchal, unknown ONGC officials, and others.

The allegation stated that Panchal, in conspiracy with unknown ONGC officials, fraudulently obtained a payment of ₹67,58,938 from ONGC on 1 June 2011.

CBI Registers Criminal Case Against Reliance Home Finance in ₹228 Crore Bank Fraud

He falsely claimed that the goods had been dispatched on 29 April 2011, even though no dispatch had taken place. As per the purchase order terms, the payment was not eligible without actual dispatch.

How the Fraud Was Executed

The investigation revealed a clear conspiracy involving:

• Fake documentation showing dispatch of goods

• Misrepresentation to ONGC to release payment

• Violation of contractual terms

• Coordination with accomplices involved in transport and verification

This scheme led to financial loss to ONGC through a fabricated dispatch entry designed to secure premature and unjustified payment.

Filing of Chargesheet and Accused Persons

After completing the investigation, CBI filed a chargesheet on 27 December 2011 against four individuals:

• Atul Naranbhai Panchal – Proprietor, National Machine Tools

• Bhavin Patel – Surveyor, Det Norske Veritas, Ahmedabad (later declared absconding; case separated)

• Mahendra Singh P. Vaghela – Employee, National Machine Tools

• Ghanshyam Rambrich Pandey – Proprietor, Ahmedabad Road Carriers

The charges included cheating, criminal conspiracy, and falsification of records.

Court's Judgment

On 9 December 2025, the CBI Court in Ahmedabad convicted three of the accused:

• Atul Naranbhai Panchal

• Mahendra Singh P. Vaghela

• Ghanshyam Rambrich Pandey

The court sentenced each of them to three years’ imprisonment along with a fine of ₹30,000. Meanwhile, the court separated proceedings against Bhavin Patel, who remained absconding.

Significance of the Verdict

The ruling marks a significant step in India’s ongoing efforts to curb corruption and financial fraud within public sector undertakings. The verdict reinforces that fraudulent practices, especially those involving government funds, will face strict legal action.

CBI Court convicts 6 individuals and private firm in Rs8.48 Crore bank fraud case

CBI’s thorough investigation and the court’s firm sentencing send a strong message that corporate fraud and illicit gains cannot go unchecked.