Servotech Renewable Uncovers Internal Fraud, Files Criminal FIR

NEW DELHI, India — Servotech Renewable Power System Ltd announced on Thursday, July 23, 2026, that it has uncovered an internal fraud scheme involving two senior employees and an external entity, resulting in an estimated financial impact of ₹2 crore to ₹2.5 crore.

The company stated that the fraudulent activity involved the unauthorized removal of company inventory and the forgery of tax invoices over an extended period. Following an internal assessment, Servotech filed a formal police complaint, leading to a registered First Information Report (FIR) in Haryana as legal and forensic proceedings begin.

Fraud Details, Executive Involvement, and Police Investigation

According to regulatory filings submitted to the National Stock Exchange of India (NSE) under Regulation 30 of SEBI (LODR) Regulations, 2015, the misconduct was executed through the systematic manipulation of company logistics and billing channels.

The preliminary internal inquiry identified two key executives who allegedly colluded with an outside firm:

• Gagandeep Rajora, Head of Supply Chain Management.

• Vijay Kumar, Manager of Production Planning & Control.

• M/s Shri Shyam Industries, an external entity involved in the collusion.

The perpetrators allegedly used forged company tax invoices containing genuine transaction data alongside the unauthorized removal of physical stock. The company has registered FIR No. 429/2026 at the Kundli Police Station in Sonipat district, Haryana.

Forensic Audit and Governance Response

To establish the complete financial scale and operational breach, Servotech Renewable Power System Ltd confirmed it is appointing an independent professional forensic auditor. The auditor will conduct a detailed reconciliation of historical inventory logs and tax filings.

Company officials emphasized that while the preliminary financial assessment places the loss at up to ₹2.5 crore, the forensic review will determine the final quantum once accounting records are fully audited.

Official Sources Section

"In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform the Exchange that the Management of Servotech Renewable Power System Ltd has detected an internal fraud involving two employees and an external party... The Company remains committed to maintaining the highest standards of corporate governance." — Regulatory Filing, Servotech Renewable Power System Ltd

Quote Section

"According to officials in the corporate disclosure, the preliminary financial impact is estimated between ₹2 crore and ₹2.5 crore, with formal police proceedings already initiated under FIR No. 429/2026 in Sonipat district."

Why It Matters

For investors and corporate governance analysts, the detection of internal supply chain fraud highlights critical operational vulnerabilities in inventory oversight and billing validation. Servotech's decision to report the incident to regulatory authorities and initiate criminal proceedings underscores an intent to enforce strict internal controls and maintain compliance standards.

Key Facts at a Glance

• Estimated Financial Impact: ₹2 crore to ₹2.5 crore based on initial reconciliation.

• Method of Execution: Inventory removal accompanied by forged tax invoices.

• Key Persons Named: Head of Supply Chain Management, Manager of Production Planning & Control, and external firm M/s Shri Shyam Industries.

• Law Enforcement Action: FIR No. 429/2026 registered at Kundli Police Station, Sonipat, Haryana.

• Next Steps: Formal appointment of an external professional forensic auditor.

Frequently Asked Questions (FAQ)

What is the financial impact of the fraud on Servotech Renewable?

The company estimates the preliminary impact at approximately ₹2 crore to ₹2.5 crore.

How was the internal fraud carried out?

The fraud involved the unauthorized removal of physical inventory combined with the forgery of tax invoices containing genuine transaction data.

Which individuals and entities were named in the disclosure?

The disclosure names Gagandeep Rajora (Head – Supply Chain Management) and Vijay Kumar (Manager – Production Planning & Control), along with external entity M/s Shri Shyam Industries.

What law enforcement actions have been taken?

Servotech filed an official complaint, resulting in FIR No. 429/2026 at Police Station Kundli, District Sonipat, Haryana.

Sources: Company Disclosure to Stock Exchange, Servotech Renewable Power System Official Website