Demonetisation scam: ED files chargesheet against 25 Hyderabad jewellers & chartered accountants

HYDERABAD: The Enforcement Directorate (ED) on Tuesday filed final chargesheet (prosecution complaint) against 25 jewellers and chartered accountants in the city in connection with demonetisation scam, where it was alleged that 'they knowingly contributed their black money in demonetised cash for conversion to gold'.
ED has named 41 accused, including promoters of Musaddilal Gems and Jewels and their relatives, in the chargesheet.
It is alleged that Rs 111 crore black money has been converted into gold and a profit of Rs 28 crore is made. The scam is worth Rs 139 crore.
ED has so far attached Rs 130 crore in the fraud under the Prevention of Money Laundering Act.
ED concluded a money-laundering investigation against Musaddilal Gems and Jewels. The investigation was done based on the FIR registered by central crime station sleuths, Hyderabad.
After the announcement of demonetisation on November 8 2016, Musaddilal Gems and Jewels, Vaishnavi Bullion and Musaddilal Jewellers had deposited demonetised notes of Rs 500 and Rs 1,000 to the tune of Rs 111 crore in their banks.
The accused raised fake cash receipts and sale invoices regarding alleged gold jewellery purchases by 6,000 fictitious customers between 8pm to midnight on the day demonetisation announced.
ED alleged Kailash Chand Gupta and his sons, with the advice of chartered accountants, fabricated invoices below Rs 2 lakh, so that there would be no requirement KYC or PAN of customers.
The accused collected black money cash from other jewellers/friends and got the same deposited in their accounts to convert it into Gold by taking a commission.
ED has said family members of Kailash Gupta, Neel Sundar Tharad, Paavan Agarwal contributed their own black money to the tune of Rs 88 crore and generated further profit.
ED named L Bajrang Pershad Jewellers, Vijay Jewellers, M Rajender Kumar Jewellers and Pearl Dealers, Vijay Vithaldas Jewellers, Inderlal Balmukund Jewellers, Murari Exports, Preethi Jewellers, Sri Yash Jewellers, Navdurga Gems and Jewellers, Vonamala Jagadeeshwaraiah, Surajbhan Jewellers, Sree Kalpataru Jewellers, Tibarumal Ramnivas Gems Jewels and Pearls, Sanjay as accused who contributed black money for conversion.
ED named chartered accountants Sanjay Sharda, Ashish Jain, Manish Gupta of Musaddilal, Tarun Jain Chartered accountant, Praveen Agarwal Tej Prakash Agarwal of P Satyaranayann Gems and Jewellery and Prem Kumar Sachdev and Nityesh Sachdev and Aditya Saraogi and Awani Saraogi of Picture decor were also named as accused.
A prosecution complaint was filed earlier before the PMLA court and a supplementary prosecution complaint has also been filed in September 2020.