CBI raids Kanishk Gold Pvt Ltd in city for Nirav Modi-like fraud against SBI, other banks

Heading the consortium of 14 banks, State Bank of India, filed a complaint with the CBI against Kanishk Gold Pvt Ltd (KGPL), a gold jewellery manufacturing company headed by Bhoopesh Kumar Jain and his associates for defrauding the bankers to the tune of Rs 824 crore by manipulating records and financial statements to avail of credit facilities and later diverting the funds.

On Wednesday, the CBI conducted searches at the official and residential premises of the accused at various places in Chennai after registering a case against Kanishk Gold Pvt Ltd. The case has been registered against KGPL and its promoter directors Bhoopesh Kumar Jain and his wife Neeta Jain and auditors – Tejraj Achha, Ajay Kumar Jain and Sumit Kedia, along with others. 

The SBI had filed a complaint with the CBI on January 25 this year on behalf of a consortium of 14 Banks for cheating the consortium to an extent of Rs. 824.15 crore (approx). 

Out of the total loss of Rs 824.15 crore caused, the banks could only recover Rs 158.65 crore from the company through collateral security in the form of immovable properties, plant and machinery, sources said. 

The Chennai-based KGPL is owned by promoter-cum-director Jain who was also managing director of Krizz Jewellery. He had been arrested by the Directorate General of GST Intelligence in September last year for allegedly evading Rs 20 crore Central excise duty during the year 2016. The whereabouts of Jain are not immediately known. “The possibility of Jain leaving the country is high,” sources added. 

The SBI in the complaint had requested the CBI to register a criminal case against Jain, his wife and director Neeta Jain, and auditors Tejraj Achha, Ajay Kumar Jain and Sumit Kedia, and others. “The role of public servants, if any, may be looked into during the course of the investigation,” sources added.