Bank Fraud: ED investigates Karol Bagh shops of Delhi-based jewellery group

Bank fraud: The shops located in Delhi's Karol Bagh market area of Shree Raj Mahal Jewellers's group firm have been attached under the anti-money laundering law as part of an investigation into multi-crore bank loan fraud, the Enforcement Directorate said.

The properties belong to Ginni Gold Private Limited and its directors-cum-promoters Ginni Devi and Reena Goel.

Ginni Gold is a "group company" of Shree Raj Mahal Jewellers Private Limited, the domestic law enforcement agency said.

Currently, Shree Raj Mahal Jewellers is currently undergoing insolvency proceedings.

The shops have been provisionally attached under provisions of the Prevention of Money Laundering Act and are valued at more than Rs 4.34 crore, it said.

The money laundering investigation stems from a Central Bureau of Investigation (CBI) FIR filed against the company (Ginni Gold) and its promoters for "bank fraud and cheating the Union Bank of India for Rs 53 crore".

The Enforcement Directorate (ED) said there are multiple FIRs registered against the promoters and group companies of Shree Raj Mahal Jewellers for "cheating" banks to the tune of Rs 232 crore.

Shree Raj Mahal Jewellers, its promoters and group entities were also raided by the central law enforcement agency in April in 2023.

In the case against Ginni Gold, the ED said the company's promoters and directors "diverted" bank funds for purposes other than the business of the entity, such as investments in immovable assets and real estate in personal names.

"The stocks hypothecated in the bank loan were also siphoned off by showing purported sales to shell (fake) entities so that the same could not be available for recovery of bank's dues," it alleged.

The shell entities either don't exist or the transactions claimed in the books were not done even as some entities have admitted that they provided entries (bogus transactions) on the request of the promoters, the agency alleged.

Some of the shell entities are operated by relatives of the promoters and directors of Ginni Gold, it said.

(With PTI Inputs)