Marcellus Investment CFO Pankaj Gupta Faces Legal Action Over Alleged ₹1.18 Crore Embezzlement
• Mumbai Police Probe Sophisticated Financial Fraud at Saurabh Mukherjea’s SEBI-Regulated Firm
• Internal Audit Uncovers Suspicious Financial Transactions
• Legal Charges Filed Under New Bharatiya Nyaya Sanhita
The Mumbai Police have charged Marcellus Investment CFO Pankaj Gupta with embezzling ₹1.18 crore through unauthorized financial transactions. According to the FIR, Gupta diverted funds from company accounts into personal bank accounts across multiple institutions. The alleged fraud, spanning December 2023 to July 2024, was exposed during an internal audit at Saurabh Mukherjea’s SEBI-regulated firm. The Sprouts SIT reports that this case raises fresh concerns over governance and fraud prevention in India’s asset management sector.
- Marcellus Investment CFO Pankaj Gupta Faces Legal Action Over Alleged ₹1.18 Crore Embezzlement
- • Mumbai Police Probe Sophisticated Financial Fraud at Saurabh Mukherjea’s SEBI-Regulated Firm
- • Internal Audit Uncovers Suspicious Financial Transactions
- • Legal Charges Filed Under New Bharatiya Nyaya Sanhita
- Marcellus Investment Internal Audit Uncovers Suspicious Transaction Patterns
- Legal Framework: Charges Under New Bharatiya Nyaya Sanhita
- Marcellus Investment Issues Statement Reaffirming Commitment to Governance
- Broader Implications for the Indian Financial Services Industry
The Mumbai Police have registered a formal case against Pankaj Gupta, the Chief Financial Officer (CFO) of Marcellus Investment Managers, following an internal investigation that uncovered an alleged ₹1.18 crore embezzlement scheme. The 41-year-old executive is accused of orchestrating a sophisticated financial fraud over a seven-month period, exploiting his privileged access to corporate accounts. This incident raises significant questions about internal controls within India’s growing asset management industry.
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According to the First Information Report (FIR) filed at the MIDC Police Station, Gupta, who joined the Andheri East-based firm in 2022, utilized company credit cards and bank accounts to execute more than 30 unauthorized transactions. The alleged embezzlement spanned from December 2023 through July 2024, with funds reportedly diverted to his personal accounts at ICICI, IDFC, Axis, and Kotak banks. The Sprouts News Investigation Team (SIT) notes that the scheme unraveled during a routine internal audit, prompting immediate action from the company’s leadership.
Marcellus Investment Internal Audit Uncovers Suspicious Transaction Patterns
The fraudulent activities were first flagged by Marcellus’s accounting team, which identified irregular transaction patterns inconsistent with standard corporate expenditures. Company director Sudhanshu Nahata was alerted to the discrepancies and subsequently confronted Gupta with the evidence. In a critical development, Gupta reportedly admitted to the misconduct during this initial confrontation, confessing to the unauthorized transfers and personal use of company funds.
Following his verbal admission, the company sought a formal written confession on official documentation. However, police reports indicate that Gupta then made threatening statements regarding potential self-harm if legal proceedings were initiated against him. This escalation prompted the firm’s chief legal advisor, Parimal Deuskar, to file a formal complaint, ensuring the matter was handled within the full scope of the law.
Legal Framework: Charges Under New Bharatiya Nyaya Sanhita
The case has been registered under sections 316(4) and 318(4) of the newly enacted Bharatiya Nyaya Sanhita (BNS), which address criminal breach of trust by a public servant or banker, and cheating, respectively. The application of these specific sections underscores the gravity of the allegations against a senior financial custodian. The Sprouts News Investigation Team confirms that authorities are now working to trace the complete flow of funds, including examining potential hawala links or crypto laundering avenues, though these aspects remain part of the ongoing probe.
Gupta’s career profile adds a layer of irony to the case. With over 16 years of experience, including senior positions at IDFC Bank and ICICI Bank, his appointment as CFO at Marcellus in 2022 was considered a strategic hire for the investment firm. His alleged actions stand in stark contrast to the firm’s publicly stated ethos of investing in companies with “high-quality governance.”
Marcellus Investment Issues Statement Reaffirming Commitment to Governance
In an official statement, Marcellus Investment Managers moved swiftly to contain the fallout, emphasizing their commitment to transparency and stakeholder protection. The firm assured clients and investors that the alleged misconduct was an isolated incident and has not impacted client investments or fund security. “Marcellus remains firmly committed to the highest standards of governance, transparency, and ethical conduct,” the company stated.
The SEBI-regulated firm, founded by renowned investor Saurabh Mukherjea, has built its reputation on advocating for strong corporate governance practices. The company’s statement further clarified that they are extending full cooperation to the authorities and will ensure complete regulatory compliance throughout the legal process. This incident highlights the critical need for robust internal financial controls, even within firms that preach governance.
Broader Implications for the Indian Financial Services Industry
This case serves as a stark reminder of the operational risks investment firms face, particularly concerning insider threats and the integrity of financial custodians. The alleged embezzlement at a firm of Marcellus’s stature will likely prompt increased scrutiny from regulators like SEBI and may lead to stricter enforcement of internal audit protocols across the industry. The legal proceedings for the recovery of the embezzled funds are expected to commence as the police investigation progresses.
