DRI arrests Shree Ganesh Jewellery House's promoter Nilesh Parekh in multi-crore gold fraud case
Parekh was last year arrested by the CBI, in connection with defrauding a consortium of banks led by the SBI, for non-payment of loans to the tune of Rs 2,672 crore.
Shree Ganesh Jewellery House Ltd's promoter Nilesh Parekh has been arrested for fraud in the diversion of over 1,700 kg of primary gold, the Directorate of Revenue Intelligence (DRI) said on Friday.
Parekh was last year arrested by the Central Bureau of Investigation (CBI), in connection with defrauding a consortium of banks led by the State Bank of India (SBI), for non-payment of loans to the tune of Rs 2,672 crore.
"We have arrested Kolkata-based Shree Ganesh Jewellery House's promoter on Thursday and he was produced before court on Friday. He has been remanded [to] eight days of judicial custody," a DRI official told IANS.
"Our investigation suggested that he was found to be actively involved in the fraud of diversion of primary gold of over 1,700 kg among other violations like non-realisation of remittance on account of export of gems & jewellery to the tune of Rs 7,500 crore," the official said.
Intelligence was developed by DRI that the firm having several units in Manikanchan Special Economic Zone (MKSEZ), Kolkata was involved in diversion of gold imported duty free on the strength of being a nominated agency and also in its capacity as a SEZ unit, a DRI statement said.
"Investigation reveals that during the currency of the Letter of Approval granted by the Development Commissioner, Manikanchan SEZ, the said company imported a total quantity of 35,746 kg of gold free of import duty. It is estimated that the exports of gold jewellery made by the said unit during the currency of the Letter of Approval was of 34,041 kg. Thus, there appears to be a diversion of 1,705 kg of primary gold," the agency said.
The agency said enquiries with the Reserve Bank of India (RBI) reveal that Shree Ganesh Jewellery House Ltd, failed to realise export proceeds to the tune of Rs 7,450 crore on account of export of jewellery to several dummy and shell companies in Singapore, Hong Kong and Dubai.
The case is also being investigated by the Enforcement Directorate (ED) and the CBI.
The CBI investigation is based on a complaint of outstanding bank loans taken from the consortium led by the SBI, while, the ED is investigating the case under the Foreign Exchange Management Act (FEMA) and the Prevention of Money Laundering Act (PMLA).
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