Loan fraud: ED arrests jeweller for causing ₹67cr loss to SBI

Hyderabad: Enforcement Directorate sleuths arrested jeweller Sanjay Agarwal on charges of money laundering in the ₹67 crore State Bank of India (SBI) loan fraud case on Sunday.
The ED booked Agarwal, the managing partner of Ghanshayamdas Gems & Jewels, which is into wholesale trading of gold under the Prevention of Money Laundering Act after an FIR was registered by the CBI banking fraud and securities cell, Bengaluru.
The CBI also registered another FIR against Agarwal for allegedly removing gold and jewellery hypothecated to Punjab National Bank (PNB) against gold loan availed by his firm, causing a loss of ₹32 crore to PNB.
The ED probe revealed that in 2010 and 2011, Agarwal fraudulently procured gold bullion from SBI by producing fake and forged bank guarantees and covering letters purportedly issued by PNB. He later sold the gold bullion in the local market to various traders in cash. “The cash generated was diverted to several other firms floated by Sanjay Agarwal in the name of his wife, brothers and his employees. He later defaulted on the gold loan. SBI found that the bank guarantees and letters were forged,” the report said.
“On August 17, 2011, Agarwal and his brothers Ajay and Vinay clandestinely removed the entire stock of gold and jewellery kept at their store in Abids, Hyderabad. The stock was already hypothecated to the PNB against gold loan availed by the firm,” it added.
Agarwal was produced before the PMLA special court in Hyderabad on February 11 and remanded to 15 days of judicial custody.