ED attaches assets worth Rs 130.57 crore of jewelers in alleged 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.

READ | ED Arrests Businessman In VVIP Choppers Money Laundering Case

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.

READ | Bank Fraud: ED Files Money Laundering Case Against UP BSP MLA, Others

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.

READ | ED Attaches Rs 80L 'bribe' Cash In Case Against Ex-SECL CMD

READ | ED Raids 10 Different Locations Of Omkar Builders In Mumbai Over Alleged SRA Misuse