CHENNAI: The Enforcement Directorate (ED) has registered a case against Chennai-based Kanishk Gold Pvt Ltd after the firm allegedly committed a loan fraud of Rs 824.15 crore on a consortium of banks led by State Bank of India.
An ED official confirmed that a case has been registered against chartered accountants Tejraj Achha, Ajay Kumar Jain and Sumit Kedia, besides promoter-director Bhoopesh Kumar Jain and his wife Neeta Jain under the Prevention of Money Laundering Act. This comes close on the heels of the CBI registering a case of loan fraud against Kanishk Gold Pvt Ltd and carrying out searches on Wednesday, following a complaint made by the SBI.
The case was registered on March 21, after the complaint was registered in Bank Fraud Cell. “The complaint was forwarded to us, following which a case was registered,” the official said.The company was engaged in manufacturing gold jewellery, which was marketed under the brand name ‘Krizz’ and sold through distributors till 2014. It was in 2015 that the company changed its business model to B2B (business-to-business) and started supplying to large retail jewellers.
The loan accounts of the company were taken over by SBI from ICICI in 2008, while its banking arrangement was converted into a multiple banking system in March 2011.The SBI alleged that the fraud was to the tune of Rs 824.15 crore, but the security available with it to cover the “loss” was only around Rs 156.65 crore.