The Enforcement Directorate (ED), Chennai, has attached 37 immovable properties worth about ₹328 crore belonging to Nathella Sampath Jewellery Private Limited (NSJPL) and its promoters under the Prevention of Money Laundering Act (PMLA), 2002, in a case related to bank loan fraud.
“Further investigations are in progress,” said K.S.V.V. Prasad, Joint Director of ED, Chennai.
In April, investigations were initiated by the ED against NSJPL-based on an FIR registered by the CBI, Bank Fraud & Security Cell, Bengaluru. The FIR was registered based on a complaint by the State Bank of India, the lead bank of a consortium of banks that gave loans to NSJPL.
In the complaint, it was alleged that the promoters of the firm had enjoyed cash credit facilities to the tune of several crores from 2009. It also said that the promoters had been misrepresenting and falsifying the books of accounts and financial statements for availing credit facilities, with a clear criminal and mala fide intent to cheat and defraud the lenders. When ED searched the premises belonging to NSJPL, various documents and electronic devices were seized. Officers who conducted a survey of the jeweller’s showrooms found that there was no stock of goods.
As on March 31, 2017, the stock reported to banks stood at about ₹495 crore in value. But as per the forensic audit conducted on the jeweller, the actual stock on that date amounted to ₹31 crore. Similarly, the sales reported for 2016-17 was to the tune of ₹1,517 crore, whereas actual sales as per the forensic audit amounted to about ₹157 crore. Purchases were reported at ₹1,591 crore, as against the actual figure of ₹61 crore.
Investigations also revealed that the promoters were using firms and trusts belonging to family members to route criminal proceeds. According to ED, 12 immovable properties of ₹113 crore were derived from criminal proceeds. In addition, 25 immovable properties worth ₹215 crore were found to have a role in money laundering.
