Kerala-based handset maker Mango Phone or mPhone has become mired in controversy after two of its directors were arrested in connection with fraud. To make things worse, they were apprehended at the launch event of the company’s new series of smartphones.
Mango Phone is owned by 3 brothers namely Anto Augustine, Josekutty Augustine and Rojy Augustine, with the first two being its directors and the last its chairman. The brand was all set to launch 3G and 4G phones ranging from Rs 5800 to Rs 34000 at the event and has invested over Rs 3500 crore to make this possible.
It’s possible at least a certain portion of this was obtained through less-than-legal means based on the charges slapped against the directors. The duo are accused of cheating the Bank of Baroda out of Rs 2.68 crore by forging documents for a property which was already pledged at Rs 11.57 crore. The police say they’ve been using this plan to fraud other institutions like the State Bank of India (SBI) as well.
According to The New Indian Express, the two Augustine brothers have been absconding for nearly a year. The unveiling of the mPhone proved to be their downfall as the police spotted them on Facebook and arrested them at the event. Meanwhile, Rojy Augustine is pleading ignorance of the case, saying he’s not aware of the charges filed by the Bank of Baroda.
He went so far as to claim that the police did not probe or seek an explanation for the matter and was acting under pressure from someone who wants to sabotage Mango Phone. The case is the second high-profile investigation of fraud allegations in India after the launch of the Freedom 251, although nothing has been proven in the latter one yet.