KOLKATA: The Enforcement Directorate (ED) has slapped a show-cause notice on a Kolkata-based jewellery firm for allegedly defrauding a consortium of 25
and laundering Rs 7,220 crore, the highest ever under the
Foreign Exchange Management Act
(FEMA), through illegal deals with shell companies abroad.
The promoters of Shree Ganesh Jewellery — Nilesh Parekh, Umesh Parekh and
— are also under the lens of
the Directorate of Revenue Intelligence
The jewellery house came under the scanner after its name emerged as a wilful defaulter of bank loans. Directorate of Revenue Intelligence took up the case in 2018, followed by the ED, which found out that the promoters had allegedly defrauded a consortium of 25 banks.
They had allegedly opened shell companies overseas and had huge outstanding for foreign bills drawn in the name of their jewellery house.
The consortium of banks was duped by floating a number of shell companies in India and abroad and subsidiaries in Dubai, Singapore and Hong Kong. They purportedly exported gold jewellery to those related overseas entities from their manufacturing unit at
The Enforcement Directorate on Monday charged the jewellery house under the Foreign Exchange Management Act “for resorting to unauthorised foreign exchange deals, holding of foreign exchange outside India and laundering of Rs 7,220 crore as export proceeds”.