HYDERABAD: The Economic Offences Wing (EOW) of the Hyderabad Central Crime Station (CCS) has filed a case against 14 employees of MGB Motor & Auto Agencies for allegedly siphoning off 20 crore from firm’s earthmover vehicles spare-parts business. The 20-year-old firm operates 33 earthmover machinery outlets across Telangana.

In his complaint, MGB’s spare-parts business head Namburi Mallikarjuna Rao said an internal audit in March initially uncovered 3.2 crore shortfall at the Hyderabad warehouse. A subsequent state-wide stock-and-invoice scrutiny allegedly exposed an identical modus operandi at 13 other locations, pushing total losses to about 20 crore.Rao said the accused are current and former employees – designated ‘spare parts executives’ or ‘parts in-charges’ – who had exploited gaps in the billing software. Instead of raising invoices, which would be reflected in audits, they generated delivery challans, collected cash payments from clients for spares supplied instead of directing them to pay to firm’s bank account, and diverted cash to personal accounts. The single largest diversion, 6 crore, is attributed to Shivangam Narayana Raju at the Sangareddy outlet. Other major shortfalls include 3.9 crore at Jadcherla, 1.7 crore at Kodad outlets, besides the loss at Hyderabad warehouse. Smaller but significant deficits were reported from Zaheerabad, Bhongir, Suryapet, Karimnagar, Khammam, Siddipet, Nizamabad, Medchal and the outlet at Hyder Nagar in Miyapur, Rao said.Based on CCS DCP N Swetha’s directions, a case was registered against 14 employees on Friday.