India News | Bank Fraud: ED Attaches Karol Bagh Shops of Delhi-based Jewellery Group

New Delhi, Jan 21 (PTI) Shops located in Delhi's Karol Bagh market area of a group company of Shree Raj Mahal Jewellers have been attached under the anti-money laundering law as part of an investigation into a multi-crore bank loan fraud, the Enforcement Directorate said on Sunday.

The properties belong to Ginni Gold Private Limited and its directors-cum-promoters Ginni Devi and Reena Goel.

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Ginni Gold is a "group company" of Shree Raj Mahal Jewellers Private Limited, the agency said in a statement. Shree Raj Mahal Jewellers is currently undergoing insolvency proceedings.

According to the agency, the shops have been provisionally attached under provisions of the Prevention of Money Laundering Act and are valued at more than Rs 4.34 crore.

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The money laundering investigation stems from a Central Bureau of Investigation (CBI) FIR filed against the company (Ginni Gold) and its promoters for "bank fraud and cheating the Union Bank of India for Rs 53 crore".

The Enforcement Directorate (ED) said there are multiple FIRs registered against the promoters and group companies of Shree Raj Mahal Jewellers for "cheating" banks to the tune of Rs 232 crore.

Shree Raj Mahal Jewellers, its promoters and group entities were also raided by the central agency in April last year.

In the case against Ginni Gold, the ED said it was found that its promoters and directors "diverted" bank funds for purposes other than the business of the entity, such as investments in immovable assets and real estate in personal names.

"The stocks hypothecated in the bank loan were also siphoned off by showing purported sales to shell (fake) entities so that the same could not be available for recovery of bank's dues," it alleged.

The shell entities either don't exist or the transactions claimed in the books were not done even as some entities have admitted that they provided entries (bogus transactions) on the request of the promoters, the agency alleged.

Some of the shell entities are operated by relatives of the promoters and directors of Ginni Gold, it said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)