Bank fraud: ED slaps biggest ever FEMA notice of Rs 7,220-crore on Kolkata firm – Times of IndiaNEW DELHI: The Enforcement Directorate (ED) has slapped its greatest ever FEMA present trigger discover of Rs 7,220 crore on a Kolkata-based jewelry home for allegedly indulging in unlawful overseas alternate overseas, official sources mentioned on Monday.

Bank fraud: ED slaps biggest ever FEMA notice of Rs 7,220-crore on Kolkata firm – Times of India

(Consultant picture)

Bank fraud: ED slaps biggest ever FEMA notice of Rs 7,220-crore on Kolkata firm – Times of India

That is linked to a financial institution mortgage fraud case, they mentioned.
The central probe company has charged Shree Ganesh Jewelry Home (I) Ltd and its promoters by an order issued by the adjudicating authority of the International Change Administration Act (FEMA) in Kolkata.
The authority is a particular director rank officer of the ED.
The sources mentioned the agency is among the many prime 100 wilful financial institution mortgage defaulters of the nation, as per the Reserve Financial institution of India (RBI), and its three promoter brothers — Nilesh Parekh, Umesh Parekh and Kamlesh Parekh — are additionally being probed the Central Bureau of Investigation (CBI) and the Directorate of Income Intelligence (DRI). Nilesh Parekh was arrested by the DRI in 2018.
The ED had additionally filed a cash laundering case in opposition to the agency and its promoters in 2018 for allegedly defrauding a consortium of 25 banks to the tune of Rs 2,672 crore by means of availing credit score services by way of working capital loans and discounting of export payments from 20 nationalised banks and 5 personal banks in Kolkata.
The FEMA present trigger discover has been issued after completion of an over year-long investigation and below numerous sections of the Foreign exchange legislation, the official sources mentioned.
The corporate and its promoters, as per the ED, have been charged below the FEMA “for resorting to unauthorised overseas alternate dealings, holding of overseas alternate exterior India and willful siphoning off a whopping quantity of Rs 7,220 crore as export proceeds”.
That is the highest-ever quantity concerned in a present trigger discover issued until date by the ED below FEMA, the sources mentioned.
The ED in its probe discovered that the corporate, Shree Ganesh Jewelry Home (I) Ltd, “has large excellent for overseas payments drawn on Al Marhaba Buying and selling FZC, Sparkle Jewelry LLC, UAE and Astha Jewelry LLC, UAE that are self-promoted firms”.
“Financial institution and public funds availed by the corporate had been ostensibly routed within the garb of export to those overseas entities and others and the proceeds in opposition to the identical had been parked exterior India,” the ED discovered throughout investigation.
The sources mentioned a letter rogatory (a authorized request for cooperation in cross-border tax investigation) looking for monetary particulars in opposition to Nilesh Parekh is “pending” earlier than the federal enforcement company of Switzerland.
The letter was issued by the ED.
The same request looking for tax particulars about him has been despatched by Swiss authorities to India lately as a part of their tax probe procedures in opposition to the businessman, they mentioned.
The company had earlier issued the same present trigger discover of Rs 250 crore in opposition to one other firm, recognized as Simple Match Jewelry Pvt Ltd, of the identical businessmen.
The ED had alleged final 12 months, after attaching Rs 175 crore price of property of the corporate, that the agency “defrauded the consortium of banks by fraudulently floating quite a few firms in India and overseas and likewise wholly-owned subsidiaries in Dubai, Singapore and Hong Kong and purportedly made exports of gold jewelry to these associated abroad entities from their manufacturing unit in Manikanchan, Kolkata”.
Nonetheless, it didn’t repatriate the sale proceeds of the exports to the financial institution consortium in India from the place the credit score services had been availed, the company mentioned.

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