Deshmukh was arrested on December 25 in Ahmedabad after being declared an absconder. Along with Deshmukh, his wife, Shobha, son, Amit, daughter, Anuradha and daughter-in-law, Chetna were also booked for cheating. Previously, Deshmukh had pleaded with the District Sessions Court for anticipatory bail, which rejected his application.

According to Jitesh Mehta, the counsel for complainant Rajendra Keswani, Deshmukh started a fake scrap processing company along with his family members. However, when he required more funds, he gave the ownership of fifty per cent of the shares to Keswani. Deshmukh declared Keswani as an investor and also the Managing Director in the company, after which he fired him through an advertisement in the newspaper accusing the latter of siphoning off Rs 1.25 crore from the company corpus.