The Enforcement Directorate has attached the movable and immovable assets worth over Rs 130 crore of various Hyderabad-based jewellery houses and their promoters in a money-laundering probe linked to alleged financial irregularities done during the 2016 demonetisation exercise, the agency said on Tuesday.
The action has been taken against Musaddilal Gems and Jewels Pvt Ltd, Vaishnavi Bullion Pvt Ltd and Musaddilal Jewellers Pvt Ltd, according to the Enforcement Directorate (ED).
“The attachment also includes gold jewellery/bullion/ornaments seized during the earlier searches which are valued at ₹ 83.30 Crore,” Directorate of Enforcement said in a statement.
The attached assets include 41 immovable properties, investments made in shares and jewellery, and bullion worth Rs 83.30 crore, seized in raids conducted some years back. The total value of these properties is Rs 130.57 crore.
The attachment has been undertaken under the Prevention of Money Laundering Act (PMLA) and the ED case is based on an FIR registered by the Telangana Police against the jewellery houses post the demonetisation of two high-value banknotes — Rs 500 and Rs 1,000 — by the government in November 2016.
In a statement, the ED said during probe it was found that the three jewellery and bullion firms had deposited Rs 111 crore worth of demonetised notes in their bank accounts immediately after the note ban was announced on November 8, 2016.
“They had raised fake cash receipts and sale invoices showing that around 6,000 fictitious customers visited their showrooms to purchase gold jewellery between 8 pm to midnight on 8.11.2016 immediately after the announcement of demonetisation,” the ED alleged. The demonetised notes were successfully placed, layered and integrated into the financial system, the ED said. The ED also found that by selling the converted gold at an exorbitant profit, Kailash Gupta and his family derived further profits of Rs 28 crore. The total proceeds of the crime are thus worked out at Rs 139 crore.
