ED Cracks Down on Financial Fraud: Seizes Properties Worth Over Rs. 107 Crore from Jewellery Companies And Directors
(Judicial Quest News Network)
10, June 2024, New Delhi: The Directorate of Enforcement (ED), Delhi Zonal Office, has made significant strides in combating financial malpractice by attaching movable and immovable assets valued at approximately Rs. 107.61 crore. Among the seized assets are properties belonging to M/s Shree Raj Mahal Jewellers Pvt Ltd (SRMJPL) totaling Rs. 94.18 crore and those of its affiliated company M/s Ginni Gold Pvt Ltd (GGPL) amounting to Rs. 13.43 crore.
The targeted properties are purportedly beneficially owned by Ashok Goel, Pradeep Goel, and Praveen Kumar Gupta, who serve as promoters and directors of these companies. The ED’s investigation was prompted by FIRs lodged by the Central Bureau of Investigation (CBI), New Delhi, against SRMJPL, GGPL, and their respective directors.
According to the FIRs, SRMJPL and GGPL, engaged in the manufacturing and trading of gold and diamond-studded jewellery, allegedly obtained loans amounting to Rs. 125 crore and Rs. 45 crore, respectively, from a consortium of banks led by Bank of India and Union Bank of India. Subsequently, they are accused of defrauding these banks.
Multiple FIRs have been filed by the CBI against the directors and promoters, as well as the group companies of SRMJPL, for allegedly deceiving the banks of approximately Rs. 232 crore. The ED’s investigation has unveiled a pattern of fund diversion by these entities and their promoters/directors. Funds meant for business purposes were allegedly redirected towards investments in immovable properties and real estates, either in personal names or indirectly controlled companies through dummy directors.
Moreover, stocks pledged as collateral for bank loans were allegedly siphoned off through purported sales to shell entities, hindering the banks’ recovery efforts. Investigations into these shell entities have revealed their non-existence or falsified transactions. Some entities have confessed to providing entries at the behest of promoters.
Furthermore, certain shell entities are purportedly operated by relatives of the promoters/directors of GGPL and SRMJPL. The ED’s probe has uncovered that the promoters/directors of GGPL and SRMJPL established nearly 100 companies/entities, allegedly utilized for fund layering and diversion from the main companies and their group entities.
In a previous operation on January 18, 2024, the ED had already seized properties worth approximately Rs. 4.34 crore, including commercial shops in Karol Bagh, Delhi, in connection with Ginni Gold Pvt Ltd and others under the Prevention of Money Laundering Act (PMLA). Additionally, search operations conducted on April 11, 2023, and May 7, 2024, resulted in the confiscation of incriminating records, high-end luxury cars such as BMW and Mercedes, among other assets.
The ED’s investigation remains ongoing as it continues to unravel the complexities of this financial misconduct.”
