Sukesh Gupta colluded with MMTC officials: ED

HYDERABAD:  The Directorate of Enforcement (ED), investigating the financial transactions of MBS and Musaddilal Gems, is believed to have found that director Sukesh Gupta colluded with various officers of Metals and Minerals Trading Corporation (MMTC) Hyderabad, to paint a distorted picture of his account, causing massive losses to the corporation.

The agency said Sukesh also entered into an OTS (One-Time Settlement) with MMTC in 2019. However, the MMTC confirmed that Sukesh didn’t comply with the OTS conditions and the deal collapsed. The ED carried out search operations on MBS Jewellers Pvt Ltd, Musaddilal Gems and Jewels India Pvt Ltd, its directors Sukesh and Anurag Gupta on October 17 at five locations in Hyderabad and Vijayawada.

The agency seized jewellery stocks worth Rs 149.10 crore and Rs 1.96 crore in cash. Sukesh was arrested on Tuesday and remanded to 14-day judicial custody on Wednesday. ED initiated an investigation on the basis of an FIR registered by CBI, ACB, Hyderabad, against Sukesh and his companies for defrauding MMTC in purchase of gold bullion under Buyer’s Credit Scheme.

The agency identified that Sukesh, in active connivance with a few officials of MMTC Hyderabad, continuously lifted gold without forex cover and without adequate security deposits. His dues were consistently misreported to the MMTC head office and without squaring off the existing losses, his firms continued lifting more and more gold from MMTC.