Kanishk Gold defrauds 14 banks, raids ensue

NEW DELHI: After registering a case against Chennai-based Kanishk Gold Pvt Ltd (KGPL) for defrauding an SBI-led consortium of 14 banks to the tune of Rs 824 crore, the CBI on Wednesday conducted searches at the official and residential premises of accused persons and the firm at various places in Chennai.

The amount was availed in the form of loans like working capital facility and term loan limits for 10-year period beginning 2008 and the same was declared as NPA in November last year.

“The case has been registered on a complaint from SBI on behalf of a consortium of 14 banks for cheating the consortium to an extent of Rs 824.15 crore (approx). Accused persons have been contacted and have been asked to join investigation,” said CBI spokesperson Abhishek Dayal.

Besides KGPL, directors of the accused firm Bhoopesh Kumar Jain, wife Neeta, the agency has also booked auditors Tejraj Achha (Partner of Achha Associates, Chennai), Ajay Kumar Jain (Partner of Ajay & Co, Chennai), Sumit Kedia (Partner of AK Lunawath & Associates) and other unknown persons for criminal conspiracy, criminal breach of trust and cheating under the Indian Penal Code and sections of the Prevention of Corruption Act, agency sources said.

The State Bank of India (SBI) had on January 25 submitted a complaint to the Central Bureau of Investigation (CBI) against the Chennai-based firm and its directors for defrauding the consortium of 14 banks led by the public sector banker of over Rs 824 crore.

The FIR alleged that KGPL was availing credit facilities from 14 banks led by SBI. The nature of the limit was Working Capital facility sanctioned to the tune of Rs 747 crore. This apart, the company had also availed certain Term Loan limits from SBI. There was falsification of records and the removal of the stocks which was secured to the lenders, the CBI said.

KGPL is involved in the business of manufacturing gold jewellery which was marketed under a brand name and used to sell its jewellery to various retail jewellers.

In the SBI complaint to the CBI which is now part of the FIR, the public sector banker stated that a forensic audit was conducted into the accounts of the accused firm which revealed  that KGPL and its directors including Promoter Director of KGPL Bhoopesh Kumar Jain and his wife Neeta Jain in collusion with the statutory auditors had been misrepresenting and falsifying records with criminal and malafide intent to cheat and defraud the banks.

“It is also revealed that the KGPL and its Directors have diverted the funds detrimental to the rights and interests of the banks. The account has been classified as the NPA as per the extant guidelines of the Reserve Bank of India (RBI) by all the lenders of the consortium,” said the complaint filed by General Manager, SBI Mid Corporate Regional Office, Chennai, GD Chandrasekhar,

Criminal, mala fide intent to cheat

In the SBI complaint to the CBI which is now part of the FIR, the banke stated that a forensic audit was conducted into accounts of the accused firm which revealed  that KGPL and its directors including Promoter Director of KGPL Bhoopesh Kumar Jain and his wife in collusion with the statutory auditors had been misrepresenting and falsifying records with criminal and malafide intent to cheat and defraud banks