Kajaria Bathware, a leading name in India’s sanitaryware and bath fittings segment, has filed a formal complaint with the Economic Offences Wing (EoW) against its Chief Financial Officer, Dilip Maliwal, alleging a ₹20 crore financial fraud carried out over the last two years through one of its subsidiaries. The move has sent ripples across corporate and investor circles, raising questions around internal controls and governance at listed companies.
According to sources familiar with the matter, the complaint alleges that Maliwal misused his position to divert company funds through a series of unauthorized transactions. These transactions were reportedly routed via the subsidiary using forged approvals, manipulated accounting entries, and inflated vendor payments. The alleged fraud is said to have occurred gradually, making it difficult to detect in routine audits.
Kajaria Bathware initiated an internal review after noticing discrepancies in financial statements and cash flows of the subsidiary. A deeper forensic audit reportedly revealed patterns suggesting deliberate financial manipulation rather than accounting errors. Following these findings, the company approached the EoW to seek a criminal investigation into the matter.
In a statement, Kajaria Bathware emphasized that it has a zero-tolerance policy towards financial misconduct and is fully cooperating with investigating agencies. The company also clarified that the alleged fraud is limited to a subsidiary and does not impact the core operations, production capacity, or customer commitments of the parent company.
Dilip Maliwal, who has served as CFO for several years, has not yet issued a public response to the allegations. Sources indicate that he has been placed on leave pending the outcome of investigations. The EoW is expected to examine bank records, digital trails, vendor contracts, and internal approvals to establish the flow of funds and determine criminal liability.
Corporate governance experts say the case highlights the increasing scrutiny on senior executives and the importance of strong internal audit mechanisms. “Financial frauds at the top level often involve complex structures and delayed detection. Prompt action by the board is critical to limit damage and maintain stakeholder trust,” said a governance analyst.
Market watchers are closely tracking developments, as any adverse findings could impact investor sentiment despite the company’s assurance of limited operational impact. Analysts note that timely disclosure and cooperation with authorities may help contain reputational risks.
The case adds to a growing list of high-profile corporate fraud investigations in India, reinforcing the role of the EoW in addressing white-collar crimes. As the probe progresses, further clarity is expected on the scale of the alleged fraud, recovery of funds, and potential legal consequences for those involved.
