CHENNAI: The Enforcement Directorate has filed a prosecution complaint against the managing director of Kanishk Gold, Bhoopesh Kumar Jain, and four others under the Prevention of Money Laundering Act before a special court designated for the trial of money laundering offences after winding up the investigations.
The investigations began after Chennai CBI registered an FIR against Kanishk Gold following a complaint from the general manager State Bank of India, Chennai, alleging offences of forgery, cheating and criminal conspiracy against Kanisk Gold Pvt Limited (KGPL), its directors and auditors for the cheating consortium of 14 banks worth Rs 824 crores.
As the offences invoked in the said FIR are scheduled offences under the PMLA, the ED, Chennai has initiated investigations against the said entities. During investigations under the PMLA, falsification of records was admitted and it was stated that though the reported stock of raw materials, semi-finished goods, finished goods, and stores spaces was about 3,000 kg in 2017, the actual stocks were found to be nil.
During simultaneous search operations, the ED had earlier frozen land and buildings along with plant and machinery worth `48 crore, available at the factory premises of KGPL in Pukkathurai village, Maduranthagam Taluk, Tamil Nadu. Later, fixed deposits available with connected jewellers, worth `143 crores, were provisionally attached.