Jewellery chain defrauds banks to tune of Rs 824.15 crore

DHNS

Chennai, 22 Mar 2018: Close on the heels of diamond merchant Nirav Modi defrauding Punjab National Bank by siphoning off thousands of crores of rupees, a consortium of banks led by State Bank of India has unearthed a scam to the tune of Rs 824.15 crore by Chennai-based Kanishk Gold Private Limited, whose promoters are currently believed to be in Mauritius.

 

Though G D Chandrashekar, general manager of SBI, Mid Corporate Regional Office-I, Chennai, sent a formal complaint to the joint director (policy), CBI, on January 21, the agency is yet to take cognisance of the complaint and file an FIR in the case.

 

In the complaint, SBI accused promoters and directors of Kanishk Gold Private Limited, Bhoopesh Kumar Jain and his wife Neeta Jain, of "misrepresenting/falsifying the records and financial statements" of the company.

 

It said the promoters presented a rosy picture since 2009 for the purpose of availing credit facilities from the bank and thereby committed criminal breach of trust and cheated the lenders.

 

"It is also revealed that M/s KGPL and its directors have diverted the funds detrimental to the rights and interests of the banks," the SBI said in its complaint and accused Kanishk of "manipulating records" and "shutting shop overnight".

 

Sources in SBI said they have received no response from the CBI and will update if there is any progress in the complaint. It was not immediately known when the Jains left India for Mauritius.

 

The first sign of trouble in KGPL was noticed in March 2017 when the company first delayed payment of interest and the directors went out of reach.

 

When the consortium members visited the corporate office, factory and showrooms in and around Chennai, they were found that there was no activity in any of the facilities.

 

The total loss caused to 14 banks is Rs 824.15 crores, with SBI at the top with a liability of Rs 240.46 crore, followed by Punjab National Bank (Rs 128.31 crore), Bank of India (Rs 46.20 crore) and Union Bank of India (Rs 54.94 crore).