Enforcement Directorate freezes Kanishk properties worth Rs 48 crore

ED had registered case against its promoter-director Bhoopesh Kumar Jain and his wife Neeta Jain, along with chartered accountants Tejraj Achha, Ajay Kumar Jain and Sumit Kedia among others under the Prevention of Money Laundering Act (PMLA). ED’s action was a result of CBI’s Bank Fraud and Security Cell’s case against the well-known chain of jewellery shops, based on a complaint from State Bank of India.

It was alleged that huge bank loans were obtained from a consortium of 14 banks showing raw materials, semi-finished goods, finished goods, stores and spares as securities. 

However, it was later realised that the stock statements were fudged with the help of charted accountants. When inspected, it was found that there was no stock. 

Also, the forensic audit identified fraudulent statements of financial reports, diversion of bank fund, siphoning of funds and asset stripping during the period from the year 2009 to 2017. The loss to the banks caused due to the fraudulent works was estimated at Rs 284 crore at the end of December 2017. There was a stock gap of 3,000 kg gold between actual stock and stock reported to bank. 

Searches were carried out at various premises linked to the firm and its senior executives. ED found land, building, plant and machinery available at the factory in Pukkathurai village in Maduranthakam in Kancheepuram district, valued at Rs 48 crore, were related to the crime. These assets were frozen under various provisions of PMLA. 

The company was engaged in manufacturing gold jewellery, which was marketed under the brand name ‘Krizz’ and sold through distributors.