Updated 2 February 2021 at 12:57 IST
ED attaches assets worth Rs 130.57 crore of jewelers in alleged demonetization scam case
The ED has attached movable and immovable assets worth Rs 130.57 crore of Musaddilal Gems and Jewels Private Limited and others in a demonetization scam case.
The Enforcement Directorate (ED) on Monday attached the movable and immovable assets worth Rs 130.57 crore of Musaddilal Gems and Jewels Private Limited and others in an alleged demonetization scam case. The agency has attached the assets and 41 immovable properties registered in the name of various jewellers and others that are involved in the case.
The ED also attached movable properties worth Rs 18.69 crores in the form of stocks and Rs 0.63 crores in shares in the scam case. The attachment further includes gold jewellery/bullion/ornaments seized during previous raids that amount to Rs 83.30 crores.
The central agency initiated an investigation against Musaddilal Gems and Jewels Pvt Ltd and a few others based on an FIR registered by Telangana State Police, Hyderabad.
Fake cash receipts raised after demonetisation
During the investigation, it was revealed that Musaddilal Gems and Jewels Pvt Ltd, Vaishnavi Bullion Private Limited and Musaddilal Jewellers Pvt Ltd had deposited Rs 111 Crore demonetized notes in their bank accounts immediately after November 8, 2016.
They allegedly raised fake cash receipts and sale invoices which showed that around 6,000 fictitious customers visited their showrooms to purchase gold jewellery between 8 pm to midnight, on November 8, 2016, immediately after the announcement of demonetization.
"Sanjay Sarda advised them to raise fabricated invoices below Rs 2 lakh so that there would be no requirement of recording the KYC proof or PAN of the customers. His CA also contributed demonetised cash for conversion and received a hefty commission for rendering this advice," ED said.
Immediately after depositing around Rs 111 Crore cash into their bank accounts, the accused transferred a large portion of the deposits to dealers to buy gold bullion, which was then delivered to various jewellers, individuals or entities involved.
ED's investigation revealed that the cited companies owned by one Kailash Chand Gupta and his sons created fabricated invoices to justify the fictitious sources of income and the large amounts of cash deposits. The total proceeds of crime worked out at Rs 139 crores. With this provisional attachment order, the total attachment of the proceeds of crime has now reached Rs 130.57 crores.
ED said the further investigation is under process.
Published By : Gloria Methri
Published On: 2 February 2021 at 12:57 IST