HYDERABAD: The Enforcement Directorate (ED) on Monday filed its final chargesheet against 25
jewellers
and chartered accountants (CAs) in Hyderabad in connection with alleged laundering of Rs 111 crore after 2016
demonetisation and converting it into gold and making a profit of Rs 28 crore.
The ED named 41 accused, including promoters of Musaddilal Gems and
Jewels
Private Limited and their relatives, in the chargesheet in the scam worth Rs 139 crore. The ED attached Rs 130 crore, including jewellery of Rs 86 crore, in February this year under the Prevention of Money Laundering Act (PMLA).
Immediately after the announcement of demonetisation on November 8, 2016, Musaddilal Gems and Jewels, Vaishnavi Bullion Pvt Ltd and Musaddilal Jewellers Private Ltd deposited high value currencies of Rs 500 and Rs 1,000 to the tune of Rs 111 crore in their bank accounts. The accused raised fake cash receipts and sale invoices attributing alleged gold jewellery purchases by creating 5,911 fictitious customers between 8 pm and 12 am on the night the demonetisation was announced.
The ED alleged that Musaddilal Jewellers MD Kailash Chand Gupta and his sons fabricated invoices below Rs 2 lakh by following the advice of CAs to avoid the mandatory requirement of
KYC
or PAN of customers. “The accused collected black money from other jewellers and friends and got the same deposited into their bank accounts to convert it into gold by taking commission,” it alleged.
The directorate further said the accused had knowingly contributed their black money in demonetised cash for conversion to gold. The ED said family members of Kailash Gupta, Neel Sunder Tharad, proprietor of Ashta Lakshmi Gold, and Pavan Agarwal of Sri Balaji Gold contributed black money to the tune of ₹88 crore and generated further profit.
The ED named L Bajrang Pershad Jewellers, Vijay Jewellers, M Rajender Kumar Jewellers and Pearl Dealers, Vijay Vithaldas Jewellers, Inderlal Balmukund Jewellers, Murari Exports, Preethi Jewellers, Sri Yash Jewellers, Navdurga Gems and Jewellers, Vonamala Jagadeeshwaraiah, Surajbhan Jewellers, Sree Kalpataru Jewellers Private Ltd, Tibarumal Ramnivas Gems Jewels and Pearls and Sanjay as accused who contributed black money for conversion.
CAs Sanjay Sharda, Ashish Jain and Manish Gupta of Musaddilal, Tarun Jain, Praveen Agarwal, Tej Prakash Agarwal of P Satyaranayann Gems and Jewellery and Prem Kumar Sachdev, Nityesh Sachdev, Aditya Saraogi and Aawani Saraogi of Picture Decor were also named as accused.
The ED concluded the money laundering investigation against Musaddilal Gems and Jewels based on an
FIR
registered by central crime
Stay updated with the latest news on Times of India. Don't miss daily games like Crossword, Sudoku, and Mini Crossword.Sudhakar Reddy Udumula is the Editor (Investigation) at the Times...
Read MoreSudhakar Reddy Udumula is the Editor (Investigation) at the Times of India, Hyderabad. Following the trail of migration and drought across the rustic landscape of Andhra Pradesh and Telangana, Sudhakar reported extensively on government apathy, divisive politics, systemic gender discrimination, agrarian crisis and the will to survive great odds. His curiosity for peeking behind the curtain triumphed over the criminal agenda of many scamsters in the highest political and corporate circles, making way for breaking stories such as Panama Papers Scam, Telgi Stamp Paper Scam, and many others. His versatility in reporting extended to red corridors of left-wing extremism where the lives of security forces and the locals in Maoist-affected areas were key points of investigation. His knack for detail provided crucial evidence of involvement from overseas in terrorist bombings in Hyderabad.
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