The accused, Bharat Kumar Mundada, has been booked in this connection by Azad Nagar police in Nashik district here.
"The accused stayed in Mahesh Nagar locality in the city and recently formed a cloth trading firm. He had won over the trust of local cloth merchants and, taking disadvantage of this, purchased material worth Rs 75 lakh from the six traders between August and October this year," a senior police officer said.
After his purchases from the said cloth merchants upon paying just a token amount, Mundada is alleged to have left Malegaon and gone to New Delhi on the pretext of his father's illness.
Following the complaint by the six merchants -- Manoj Kumar Baheti, Rais Shaikh, Raj Kumar Mundada, Shiv Shankar Mundada, Rama Chandak and Bhushan Shrawan -- police have registered a case of cheating against the accused and launched a search for him.