The Enforcement Directorate, Chennai, filed prosecution complaint against Kanishk Gold Managing Director Bhoopesh Kumar Jain and others involved in an alleged money laundering offence linked to cheating a consortium of banks to the tune of Rs 824 crore, before the designated special court.
Enforcement Directorate
Chennai:
It was alleged that Kanishk had availed huge credit facilities from the consortium on the primary security stock of gold up to 3,000 kg. Later, it was found that the company had nil stock of gold. A forensic audit revealed misrepresentation and falsification of records, and diversion of funds and disposal of the stocks by the company leading to an estimated loss of Rs 824 crore to the banks.
The ED had already frozen land and buildings of the company worth Rs 48 crore, provisionally attached fixed deposits to the tune of Rs 143 crore and Rs 138 crore worth immovable properties.
After conclusion of investigation over these properties, a prosecution complaint has been filed, a statement from the agency said on Friday.