Chennai, July 20 : The Enforcement Directorate (ED) on Friday said it has filed a prosecution complaint against Bhoopesh Kumar Jain, Managing Director of Kanishk Gold Pvt Ltd and others for alleged money laundering.
In a statement issued here, the ED said on conclusion of its investigations in connection with the properties bought with the money borrowed from banks fraudently, the prosecution complaint has been filed against Jain and four others for trail of money laundering offences.
The jewellery company is alleged to have indulged in offences of forgery, cheating and criminal conspiracy against a 14 member banking consortium led by State Bank of India (SBI).
The SBI has loged a complaint with the Central Bureau of Investigation and a FIR has been lodged.
It is alleged that Kanishk Gold secured credit facilities from banks after providing fudged stock statements with the help of chartered accountants.
The total loss caused to the banks due to the above fraud works out to the tune of Rs 824 crore, outstanding as on December 31, 2017, the ED said.
In June, the ED said it had attached 14 immovable properties worth about Rs 138 crore belonging to Kanishk Gold and its Managing Director Jain.
On April 24, the ED it has frozen Rs 48 crore worth of properties belonging to Kanishk Gold Pvt Ltd under the PMLA.
According to ED, a Provisional Attachment Order was issued April 24, attaching properties to the tune of Rs 143.58 crore, which were identified as proceeds of crime committed by Jain along with others, as the same are involved in money laundering.