ED conducts searches in Rs 2,600-crore bank fraud case

Kolkata: The Enforcement Directorate (ED) has conducted raids at 10 respective locations of Shree Ganesh Jewellery House across Kolkata in connection with Rs 2,672 crore money laundering case. It is alleged that the said concern had borrowed money from almost 25 private and nationalised banks and did not repay the loans.

According to sources, Ganesh Jewellery House used to deal in gold import-export in Singapore, Hong Kong and other countries. It is also alleged that the said company has defrauded and laundered a whopping amount of over Rs 2,600 crore from a consortium of 25 banks across the country through its Indian and overseas associates in Dubai, Singapore and Hong Kong.

The company had also availed huge credit facilities from banks in the guise of exporting jewellery but the money was siphoned off. It is suspected that Nilkesh Parekh, chairman and his two brothers, identified as Umesh Parekh and Kamalesh Parekh, who are the promoters, are the masterminds behind the fraud. On Thursday, 11 teams comprising 60 ED officials and personnel raided in the office premises and houses of the officials including Nilesh Parekh of Ganesh Jewellery House at multiple locations including Salt Lake, Tollygunge, Ballygunge, Camac Street and Kalighat.

During the searches, several incriminating documents such as property documents, bank account details, cash books, details of expensive cars and bikes were found. The ED has been investigating the case under the Foreign Exchange Management Act (FEMA) and under the Prevention of Money Laundering Act (PMLA). Based on a complaint of defrauding a consortium of banks led by the State Bank of India (SBI) for non-payment of loans to the tune of Rs 2,672 crore, the Central Bureau of Investigation (CBI) had earlier commenced an investigation against the company. Sources informed that the Shree Ganesh Jewellery House has several units in Manikanchan Special Economic Zone (MKSEZ). The Directorate of Revenue Intelligence (DRI) had also investigated a case for alleged involvement in a fraud of diversion of primary gold weighing over 1,700 kg. He was arrested by the DRI during June last year for allegedly being involved in diversion of gold that was imported duty free on the strength of being a nominated agency and also in its capacity as an SEZ unit. At present, Parekh is on an interim bail and there is restriction over his travelling out of Kolkata.