The CBI has booked Auro Gold Jewellery Private Limited, its directors and guarantors in connection with a ₹229-crore bank loan fraud case.
Among those named in the case are the company’s managing director, Amritlal Jain, Ritesh Jain, Kritika Dahal, Patsy Hyginus Kinny and GIA Exports, besides unknown bank officials.
According to the FIR, the current outstanding on account of loans extended by the State Bank of India (SBI), Andhra Bank and IDBI Bank stands at ₹290.43 crore.
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In its complaint, the SBI alleged that it had sanctioned credit facilities of over ₹229 crore to the company. However, the funds were used for trading with other firms which were not in the same line of business. The advances were allegedly diverted.
The bank funds were directed to the personal accounts of the directors and used for business purposes fraudulently by opening fictitious accounts.
Financial records were falsified and fake invoices used to show sales. On-paper movement of goods were shown. Bank auditors found that the company maintained accounts in two other banks, which were not part of the consortium. Substantial turnover was routed through these accounts, as alleged.
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The FIR alleges that the company directors diverted the funds to personal accounts. The money was then transferred as their contribution towards equity share capital. “This has resulted into wrongful loss to the tune of ₹387.69 crore to the bank and wrongful gain to themselves,” it said.
Mr. Ritesh Jain, former company director, was earlier accused of his role in laundering ₹1,478 crore using shell companies. In March, he was intercepted at Mumbai airport on his return from Dubai. The Mumbai police have registered at least two cases linked to him and others.
Based on one of the cases, the Enforcement Directorate is conducting a money laundering probe and had earlier attached properties in its case.