Kajaria Bathware Files EOW Complaint Against CFO Over ₹20 Crore Fraud
CFO accused of siphoning funds from Kerovit Global subsidiary over two years
Company initiates forensic audit, assures investors of strong fundamentals despite setback
By Our Legal Reporter
New Delhi: December 22, 2025:
In a major corporate fraud case, Kajaria Bathware Pvt Ltd (KBPL), a wholly owned subsidiary of Kajaria Ceramics Ltd, has filed a police complaint against its Chief Financial Officer (CFO) Dilip Kumar Maliwal. The company alleges that Maliwal embezzled and siphoned off nearly ₹20 crore from its subsidiary Kerovit Global Pvt Ltd over the past two years.
Also Read: Why Housing Costs Make India’s Mega Cities Unaffordable
The complaint was lodged with the Economic Offences Wing (EOW) of Delhi Police and the Station House Officer of Badarpur Police Station on 18 December 2025, immediately after the fraud was unearthed.
Details of the Allegations
- Fraud Amount: Approximately ₹20 crore.
- Period: Two years of alleged embezzlement.
- Modus Operandi: Siphoning of funds from Kerovit Global, a wholly owned subsidiary of KBPL.
- Action Taken:
- CFO’s services terminated.
- Complaint filed with EOW and local police.
- Forensic audit planned to strengthen internal controls.
Company’s Response
Kajaria Bathware stated in its regulatory filings that the fraud was discovered during internal investigations. The management acted swiftly by:
- Filing police complaints.
- Terminating Maliwal’s employment.
- Informing investors and private equity partner WestBridge Capital.
- Reviewing other subsidiaries to ensure no discrepancies were found.
Also Read: Madras High Court Calls for Audit of Fees Paid to Law Officers
During an investor call, Rishi Kajaria, Managing Director, admitted there was a lapse in systems and controls but assured stakeholders that corrective measures, including forensic audits, would be undertaken.
Impact on Investors and Market
Shares of Kajaria Ceramics Ltd fell slightly after the disclosure, trading at ₹1,049 apiece on 22 December 2025, down 0.4%.
The company clarified that while the fraud amount is significant, it will be treated as an exceptional item in financial reporting. Management assured that the fundamentals of the company remain strong and no other subsidiaries showed irregularities.
Broader Context of Corporate Fraud in India
This case adds to a growing list of corporate frauds in India, where senior executives have been accused of misappropriating funds. Key issues include:
- Weak internal controls in subsidiaries.
- Delayed detection of fraud due to trust in senior management.
- Investor concerns about transparency and governance.
Experts argue that companies must adopt stronger compliance frameworks, including:
- Regular forensic audits.
- Independent oversight of subsidiaries.
- Stricter accountability for senior executives.
Legal Proceedings Ahead
Also Read: NRE vs NRO: FEMA Rules, RBI Regulations, and Tax Implications for NRI Mutual Fund Investors
The EOW is expected to investigate the case thoroughly. If proven, Maliwal could face charges under:
- Indian Penal Code (IPC): Criminal breach of trust, cheating, and embezzlement.
- Companies Act, 2013: Misuse of position as a key managerial personnel member.
- Prevention of Corruption Act: If public funds or regulatory violations are involved.
The case will likely set a precedent for corporate accountability in India’s fast-growing ceramic and bathware industry.
Conclusion
The Kajaria Bathware fraud case underscores the importance of robust corporate governance. While the company has acted swiftly to contain the damage, the incident raises questions about oversight in subsidiaries and the role of CFOs in maintaining financial integrity.
For investors, the case is a reminder to monitor corporate disclosures closely. For regulators, it highlights the need for stronger enforcement against white-collar crime.
GEO Keywords for Faster Searches
- Kajaria Bathware CFO fraud complaint
- Dilip Kumar Maliwal ₹20 crore embezzlement
- Kerovit Global subsidiary fraud case
- Kajaria Ceramics corporate governance scandal
- Economic Offences Wing Delhi Kajaria case
- CFO terminated Kajaria Bathware fraud
- Corporate fraud India bathware industry
- Kajaria Ceramics investor call fraud disclosure
- Forensic audit Kajaria Bathware subsidiary
- Delhi Police EOW corporate fraud investigation
Also Read: Falcon Scam: ED Traces Global Money Trail, Legal Fallout Looms Large