Mussadilal Gold Fraud: ED files for prosecution of Sukesh Gupta
The accused, Sukesh Gupta, was the director of the scam who entered into a conspiracy with others and cheated MMTC, causing it huge losses
By Coreena Suares Published on 4 March 2025 7:57 PM IST
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Hyderabad: Enforcement Directorate here has filed for prosecution of Sukesh Gupta of MBS Jewellers and Mussadilal Gems and Jewelsā (India) Anurag Gupta, Karri Ravi Prasad and Valluri Mohan Rao under Prevention of Money Laundering Act (PMLA), 2002.
ED took up the investigation based on an FIR registered by the Central Investigating Bureau against Sukesh Gupta and his group of companies for defrauding MMTC Limited, a public section, to the tune of Rs 504.34 crores.
What is Mussadilal Gold Fraud?
Sukesh Gupta, by using his companies, received gold bullion from M MMTC Limited on a Buyers Credit loan basis by keeping the forex position open without paying the additional 5 per cent margin money because of which MMTC suffered a loss of Rs 549.06 crore.
Probe revealed
The accused, Sukesh Gupta, was the director of the scam who entered into a conspiracy with others and cheated MMTC, causing it huge losses. Despite the huge payables to MMTC, the business of MBS group went uninterrupted, and it utilised the gold for its profitable business ventures.
As per the law, Sukesh Guptaās companies were not supposed to receive any further gold from MMTC till it had squared off its older dues.
āHowever, instead of clearing its older dues and giving fresh adequate forex cover/security, Sukesh Gupta colluded with various officers of MMTC Hyderabad and others, and painted a wrong picture of his accounts and kept on lifting more and more gold to carry on his business as usual,ā ED's investigation revealed.
What happened to the gold?
Sukesh Gupta, using his MBS Group of companies, sold the gold bullion/jewellery to their various customers and further diverted and siphoned off the proceeds of gold through various MBS Group entities and their directors/partners/proprietors.
This case has been pending since 2018. ED seized properties worth Rs 149.10 crore and cash worth Rs 1.96 crore. Properties worth Rs 363.50 crore belonging to Sukesh Gupta and related entities have been attached by the ED.
