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Kanishk Gold fraud: Enforcement Directorate attaches Rs 138 cr assets of Chennai firm, its MD in money laundering case

Chennai: The Enforcement Directorate (ED) on Thursday said it has attached immovable properties, worth Rs 138 crore, belonging to Kanishk Gold Pvt Ltd and its Managing Director Bhoopesh Kumar Jain under the Prevention of Money Laundering Act (PMLA).

In a statement issued Chennai, ED said the 14 immovable properties worth about Rs 138 crore belonging to Kanishk Gold and its Managing Director Jain.

On 24 April, the ED had frozen Rs 48 crore worth of properties belonging to Kanishk Gold Pvt Ltd under PMLA.

Representational image. Reuters

Representational image. Reuters

According to ED, a Provisional Attachment Order was issued 24 April, attaching properties to the tune of Rs 143.58 crore, which were identified as proceeds of crime committed by Jain along with others, as the same are involved in money laundering.

The jewellery company is alleged to have indulged in offences of forgery, cheating and criminal conspiracy against 14 member banking consortium led by State Bank of India (SBI).

The SBI has loged a complaint with the Central Bureau of Investigation and an FIR has been lodged.

It is alleged that Kanishk Gold secured credit facilities from banks after providing fudged stock statements with the help of chartered accountants.

The total loss caused to the banks due to the above fraud works out to the tune of Rs 824 crore, outstanding as on 31 December, 2017, the ED said.

Updated Date: Jun 15, 2018 10:26 AM

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