AdminMumbai police arrest the CEO of a Bangalore‑based firm in the alleged Rs 1.01 crore iPhone procurement scam.
The Mumbai Road Area (MRA) Marg police detained Mr. Mrityunjay Prasad Gupta, the chief executive officer of Consolidated Private Limited (operating under the brand name “Maple”) on Tuesday. Gupta is accused of orchestrating a large‑scale procurement fraud involving the purchase of 150 Apple iPhone 16 units at ₹68 000 each, amounting to approximately ₹1.01 crore. The CEO’s arrest follows a complaint lodged by a mobile trader in Bengaluru and marks the fourth arrest in what authorities are calling a coordinated “iPhone procurement scam”.
Background / Context
Apple’s latest iPhone 16 launch has been one of the most anticipated tech events of the year, with consumers worldwide lining up for the new device. In India, the demand has been particularly high, driving up prices and inflating the secondary market. It is against this backdrop that the alleged scam unfolded: a vendor presented a contract to purchase the phones at a price allegedly lower than the official wholesale rate, promising delivery and swift payment.
While the smartphone industry is heavily regulated, there have been repeated reports of procurement fraud where vendors inflate prices, falsify orders, or redirect funds to third parties. “Such schemes erode consumer trust and create a climate of suspicion”, noted IPS officer Ajay Chaudhary, a senior investigator in the case. The Maple case is now the latest example of how sophisticated fraudsters are exploiting gaps in supply‑chain accountability.
Key Developments
Gupta was apprehended in Bengaluru by the Karnataka Police Cooperative Bank wing in collusion with the Mumbai police. According to court records, he was produced before the Mazgaon Court yesterday and remanded to judicial custody on grounds of “cheating and causing financial loss” through “falsified business representations”. The detention came after investigations revealed that Gupta had allegedly misled complainants by issuing false assurances about the procurement process and diverting the funds received for the Apple devices into personal accounts.
The investigation began when mobile trader Imran Merchant filed a complaint with the Criminal Investigation Department (CID) in Bengaluru. Merchant alleged that Gujarat‑based entity “Maple” promised delivery of 150 iPhone 16 units at ₹68 000 each but never shipped the devices. The firm allegedly failed to deliver the promised technology and allegedly hid the money in a series of shell companies.
Gupta is not the first person in the chain to face legal action. Earlier, counsel Sanjay Pradhan (61), a commission agent, Maple store manager Ibrahim Ansari, and former executive Deven Devda were arrested in connection with the same scheme. Their arrests highlighted a possible internal syndicate within Consolidated Private Limited, orchestrated by Gupta at the top.
According to the police report, the procurement order was signed on 23 August 2025 but the delivery never materialised. Gupta is suspected of forging contracts and misappropriating the full amount. “The procurement contract was falsified in key clauses and the payments were diverted to off‑book accounts”, explained the Deputy Commissioner of Police, Mahesh Rao.
While in custody, Gupta denied the allegations, claiming the company’s procurement processes were legitimate and that all payments were directed to authorized vendors. “I have never broken the law for a corporate buy”, Gupta said in an interview. However, the court has deferred to the police evidence, which includes digital footprints, bank statements, and phone recordings implicating Gupta in directing the fraud.
Impact Analysis
This development is a harbinger for both domestic businesses and international students who rely on dependable technology for education and research. The ripple effect of such procurement scams can be extensive:
- Financial Losses – Students and academics who purchase high‑value equipment through student specific vendors risk losing funds if the vendor is part of a fraud network.
- Market Instability – Unreliable procurement practices may inflate resale prices, making it harder for students to afford devices.
- Legal Repercussions – Companies found complicit risk facing GST penalties and court orders for restitution.
- Regulatory Scrutiny – The scam has prompted the Ministry of Corporate Affairs to review procurement norms for private firms, affecting future tender processes.
International students, in particular, often turn to local vendors for the purchase of laptops, tablets, and smartphones that comply with ISP requirements. “The trust that students place in local vendors is being eroded by cases like this, making them more cautious about where they buy”, explained Rahul Patel, an academic advisor at the University of Mumbai.
Expert Insights / Tips
Finance experts advise that institutional buyers and students undertake the following steps before making large purchases:
- Verify Company Credentials – Check the company’s registration number with the Ministry of Corporate Affairs (MCA) database and ensure it has no pendings or litigations.
- Use Escrow Services – Verify that the payment is directed to a neutral escrow account that releases funds only upon delivery of goods.
- Ask for Signed Contracts – Ensure that all terms, quantities, and prices are documented, and both parties sign the contract in the presence of a notary.
- Confirm Authenticity of Devices – Ask for serial numbers and Apple’s official check‑in sheet before confirming payment.
- Keep Digital Proof – Maintain electronic copies of all communication, invoices, and payment confirmations to use as evidence if required.
- Consult a Legal Advisor – Before signing large contracts, especially with overseas companies, consider a brief review from an IP or corporate law specialist.
For students at universities, the procurement process should go through the institutional purchasing department, which follows a set of internal controls designed to mitigate fraud risks.
Looking Ahead
The next few weeks will see the case move through the legal pipeline. The Mazgaon Court has scheduled a hearing for 12 December to decide on further bail or imprisonment. If the court finds the evidence sufficient, Gupta may face a prison sentence of up to five years, plus restitution orders amounting to the total loss.
The financial ramifications for Consolidated Private Limited are substantial. The company already faces a pending ₹3 million fine from the GST authorities for financial discrepancies. “This case will set a precedent for procurement regulations in the tech sector”, noted legal analyst Shreya Anand of the Institute of Corporate Law.
In response to the growing concern, the Ministry of Electronics and Information Technology has announced a draft amendment to the Information Technology (Procurement) Rules 2024, which will introduce stricter compliance checks and mandatory traceability for high‑value tech purchases.
For students planning to purchase their devices this year, the key takeaway is vigilance. With the crackdown in place, law firms are also increasing their outreach to educational institutions to educate staff and students about fraud‐free procurement practices.
Conclusion
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