The Directorate of Enforcement (ED) has taken stringent motion towards a Coimbatore-based jewelry agency, Lavanya Jewels, now often known as Lavanya Gold Jewels India Pvt Ltd, in reference to a major financial institution fraud case. As a part of its investigation, the ED has provisionally hooked up immovable properties valued at ₹34.11 crore, together with land parcels, residential land, and a flat located in Coimbatore and Chennai, beneath the provisions of the Prevention of Cash Laundering Act (PMLA).
This transfer comes following an FIR lodged by the Central Bureau of Investigation (CBI) in Bengaluru towards the administrators of Lavanya Gold Jewels India Pvt. Ltd. The investigation focuses on alleged monetary irregularities leading to a wrongful lack of ₹65 crore to the State Financial institution of India, in accordance with an official launch.
The ED’s investigation uncovered a sequence of illicit actions perpetrated by Lavanya Jewels. It revealed that the corporate had secured money credit score amenities from the financial institution primarily based on inflated figures of its stock-in-hand and debtors. These funds had been then misused, together with reimbursement to personal financiers who had prolonged money loans at exorbitant rates of interest starting from 60% to 100% each year. Moreover, the funds had been diverted for non-business functions.
Moreover, the investigation uncovered the unlawful diversion of gold bars and jewelry by the corporate’s administrators for private use. Shockingly, it was found that the accused had transformed the gold stock into bitcoins overseas, subsequently laundering the proceeds of the crime by way of advanced cryptocurrency accounts. The laundered funds had been then used to amass property, together with a residential flat valued at ₹1.70 crore in Chennai.
The ED’s scrutiny additionally unearthed fraudulent actions involving mortgaged properties. One such property was allegedly fraudulently acquired in an e-auction by an actual property entity at a considerably decrease worth of ₹6.5 crore, regardless of its market worth exceeding ₹20 crore. This transaction, performed within the identify of an worker of the true property entity, constitutes proceeds of crime and has resulted in substantial losses to the financial institution.
Because the investigation progresses, authorities are intensifying efforts to carry accountable these concerned in monetary malpractice, underscoring the crucial of strong measures to fight cash laundering and monetary fraud.