Enforcement Directorate (ED) has attached the properties of Kanishk Gold Pvt Ltd and its Managing Director Bhoopesh Jain in a case registered under the Prevention of Money Laundering Act (PMLA) on June 14, 2018, an official release said here on Thursday. The probe agency move comes after the registration of case against Bhoopesh Jain by the CBI, Bangaluru for defrauding a consortium of 14 banks led by State Bank of India to the tune of Rs 824 crore.
During the investigations, it was revealed that Jain had unduly enjoyed bank borrowings in the form of Working Capital Credit facilities to the tune of several Crore from the 14-bank Consortium, for his company Kanishk Gold Pvt Ltd (KGPL) from the year 2009.
"The credit facilities extended to the Company were secured by the primary raw material of Gold Bullions, semi finished goods and finished goods of Gold Jewellary and other stores showing huge stocks, whereas the accused had mortgaged several immovable properties with the Consortium Banks as collateral securities. However it was later realised that stock statements were fudged with the help of chartered accountants and on inspection by the banks in May 2017, it was found that were there no stock of Gold or jewellary and effectively all the operations came to stand still", the ED release said. During the course of investigation under PMLA, initially on March 23 this year, the properties in the form of Land and Building, Plant and machinery of manufacturing Unit of KGPL, which were available in the factory premises of KGPL worth Rs 48 crore were frozen by the investigating agency. Further a provisional attachment order was issued under the provisions of Section 5(1) of PMLA, 2002 on April 24, 2018, attaching properties to the tune of Rs 143.58 crore, which were identified as proceeds of crime committed by Bhoopesh Jain along with others and as the same are involved in money laundering. The investigation conducted further revealed that he had purchased immovable properties both in his name and in the name of the company, out of the bank borrowings, obtained by him fraudulently, which were originally meant for the manufacturing facilities of his company. The ED has attached the following 14 immovable properties totally valued at Rs 138 crore, which are involved in money laundering and proceed of crime.
"Jain was arrested on May 25 this year under the provisions of PMLA, as he is guilty of the offence of Money Laundering and he is under judicial custody in Central Prison, Puzhal, Chennai", the ED's statement added. UNI AKS SHK 2135
-- (UNI) -- C-1-1-DL0461-1403226.Xml