The Central Bureau of Investigation on Monday arrested Hasmukh Shah, a close confidant of Winsome group promoter Jatin Mehta and former director of Forever Precious Jewellery and Diamonds Limited, in a bank loan fraud case. The agency has registered at least six cases against the group involving ₹6,712 crore.
The arrest came days after the Congress raised the issue, stating that Mehta and his wife had fled the country. They gave up Indian citizenship on June 2, 2016, and became citizens of the Federation of St. Kitts and Nevis. “It is alleged that Shah was a close associate of main accused Jatin Mehta, and was instrumental in orchestrating the import-export operations of group company Forever Precious Jewellery and Diamonds. He also allegedly liaisoned with various banks,” said the CBI spokesperson.
Winsome Diamonds & Jewellery Ltd, Forever Precious Jewellery & Diamonds Ltd and its promoter had availed of loans for purchase of gold and diamonds and other related works from several banks, including the Bank of Nova Scotia, the Standard Chartered Bank (London) and the Barclays Bank. Another group company had taken a loan of ₹283 crore.
The accused were also granted fund-based working capital limit and non-fund based limits from a consortium of banks led by the Punjab National Bank and the Standard Chartered Bank. Using the loan amounts, they exported diamond and gold jewellery to 13 foreign companies in the United Arab Emirates, represented and controlled by Jordanian national Haytham Salman Ali Abu Obaidah.
However, the UAE-based companies did not remit the money towards the payment of said exports in 2012. The group started defaulting on loan repayments the next year and it was later declared a wilful defaulter. In 2014, the Central Vigilance Commission recommended a CBI probe.
The CBI investigation, which was launched in March 2014, revealed that the funds were allegedly diverted to the UAE. In the case of the Punjab National Bank, the group owed ₹1,658.08 crore.
Based on the CBI cases, the ED has also initiated money laundering investigations and attached assets worth hundreds of crores.
