The Mumbai police have arrested cricketer Hardik Pandya's stepbrother for allegedly cheating him and his brother Krunal in polymer business to the tune of more than Rs 4 crore, an official said on Thursday.

The Economic Offences Wing (EOW) of the city police arrested 37-year-old Vaibhav Pandya on Monday on the charges of criminal breach of trust, criminal intimidation, criminal conspiracy, forgery and other relevant sections, he said.

"The cricketer brothers along with their stepbrother set up a partnership-based firm in Mumbai and started polymer business in 2021. As per the partnership terms, the siblings invested 40 per cent each, while Vaibhav invested 20 percent capital. It was decided that Vaibhav would handle daily operations of the business and the profits were distributed in the same ratio," the official said.

"Vaibhav then set up another firm dealing in the same business without informing the cricketers and started the business. With this, he violated the partnership agreement," he said.

Due to the new company, the profits of the original partnership firm came down and caused a loss approximate Rs 3 crore, the official said.

During this period, he increased his own profit by 20 to 33 per cent and caused loss to Hardik Pandya and his brother. Vaibhav also diverted funds from the partnership account to his own, which is around Rs 1 crore, he added.

When he was confronted by the cricketer, he allegedly threatened to tarnish the latter's reputation, he said.

A complaint was lodged by the accountant of the cricketer at the Khar police station on Monday, based on which a case was registered and it was transferred to the EOW.

As the involvement of Vaibhav Pandya came to light in the crime, he was placed under arrest by the EOW officials on the same day, he said.

He was produced in a local court, which remanded him in police custody till Friday, he said.

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