Ex-Gameskraft CFO diverted Rs 270 crore for F&O trading: FIR

Bengaluru: Gameskraft Technologies accused its former group chief financial officer, Ramesh Prabhu, of diverting company funds into unauthorised futures and options trading, causing losses he estimated at more than Rs 250 crore.

Following a fact-finding review, the company wrote off Rs 270.4 crore in its accounts for FY25. The allegations form part of an FIR registered by Bengaluru police on Sept 9. "Because the case involves an inordinate amount, we are taking opinion on whether it can be transferred to CID for investigation," a senior officer told TOI.

The company did not respond to queries till press time. According to the FIR, Prabhu admitted in a March 5 email to using company funds for personal trading over the past three to four years. In the email, he placed the loss at over Rs 250 crore and claimed full responsibility, adding that no other employees were aware of his actions.

An internal probe later uncovered unauthorised transactions worth Rs 231.4 crore between FY20 and FY25, of which Rs 211.5 crore was disguised as investments and another Rs 19.9 crore was added in FY25. The carrying value of these "investments" stood at Rs 250.6 crore as of March 31, 2024. Based on these findings, the company adjusted its FY25 financials with a Rs 270.4 crore write-off. Prabhu allegedly operated through an RBL Bank account under his sole control, diverted funds to his personal account, altered bank statements, and fabricated mutual fund records to conceal the misuse.

The FIR cites multiple offences under the Bharatiya Nyaya Sanhita, including theft, criminal breach of trust, concealment of property, forgery, and falsification of accounts. It also notes that Prabhu signed off on company financials for several years despite manipulated entries. He has not reported to work since March 1 and has been untraceable since sending the email.