Bank fraud: ED slaps biggest-ever FEMA discover of Rs 7,220-cr on Kolkata agency

New Delhi, July 6

The Enforcement Directorate (ED) has slapped its biggest-ever FEMA present trigger discover of Rs 7,220 crore on a Kolkata-based jewelry home for allegedly indulging in unlawful international trade overseas, official sources mentioned on Monday.

This is linked to a financial institution mortgage fraud case, they mentioned.

The central probe company has charged Shree Ganesh Jewellery House (I) Ltd and its promoters by an order issued by the adjudicating authority of the Foreign Exchange Management Act (FEMA) in Kolkata.

The authority is a particular director rank officer of the ED.

The sources mentioned the agency is among the many prime 100 wilful financial institution mortgage defaulters of the nation, as per the Reserve Bank of India (RBI), and its three promoter brothers—Nilesh Parekh, Umesh Parekh and Kamlesh Parekh—are additionally being probed the Central Bureau of Investigation (CBI) and the Directorate of Revenue Intelligence (DRI).

Nilesh Parekh was arrested by the DRI in 2018.

The ED had additionally filed a cash laundering case towards the agency and its promoters in 2018 for allegedly defrauding a consortium of 25 banks to the tune of Rs 2,672 crore by the use of availing credit score services by way of working capital loans and discounting of export payments from 20 nationalised banks and 5 non-public banks in Kolkata.

The FEMA present trigger discover has been issued after completion of an over year-long investigation and below numerous sections of the Forex regulation, the official sources mentioned.

The firm and its promoters, as per the ED, have been charged below the FEMA “for resorting to unauthorised foreign exchange dealings, holding of foreign exchange outside India and wilful siphoning off a whopping amount of Rs 7,220 crore as export proceeds”.

This is the highest-ever quantity concerned in a present trigger discover issued until date by the ED below FEMA, the sources mentioned.

The ED in its probe discovered that the corporate, Shree Ganesh Jewellery House (I) Ltd, “has huge outstanding for foreign bills drawn on Al Marhaba Trading FZC, Sparkle Jewellery LLC, UAE and Astha Jewellery LLC, UAE which are self-promoted companies”.

“Bank and public funds availed by the company were ostensibly routed in the garb of export to these foreign entities and others and the proceeds against the same were parked outside India,” the ED discovered throughout investigation.

A letter of request towards the agency and its promoters issued by the ED is “pending” earlier than the federal enforcement company of Switzerland, the sources mentioned.

The company had earlier issued the same present trigger discover of Rs 250 crore towards one other firm, recognized as Easy Fit Jewellery Pvt Ltd, of the identical businessmen.

The ED had alleged final yr, after attaching Rs 175 crore price of belongings of the corporate, that the agency “defrauded the consortium of banks by fraudulently floating numerous companies in India and abroad and also wholly-owned subsidiaries in Dubai, Singapore and Hong Kong and purportedly made exports of gold jewellery to those related overseas entities from their manufacturing unit in Manikanchan, Kolkata”.

However, it didn’t repatriate the sale proceeds of the exports to the financial institution consortium in India from the place the credit score services have been availed, the company mentioned. — PTI

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