Gold fraud case: ED attaches Rs 363.51 Cr worth properties of Hyderabad-based MBS Jewelers

ED said 45 immovable properties of Hyderabad based MBS Jewelers Private Limited and MBS Impex Private Limited, Sukesh Gupta, Anurag Gupta, Neetu Gupta, Vandana Gupta, and their other entities

ED initiated a money-laundering investigation on the basis of FIR registered by ACB, CBI, Hyderabad against Sukesh Gupta and his companies for defrauding MMTC Limited (a Public Sector Enterprise). The company had purchased gold bullion under Buyer's Credit Scheme.

ED said Sukesh Gupta in active connivance with few officials of MMTC Hyderabad had continuously lifted gold without forex cover and without adequate security deposits.

"His dues were consistently misreported to the MMTC Head Office and without squaring off the existing losses, his firms continued lifting gold from MMTC for their personal gain and thereby caused a loss of public money to the tune of Rs 504.34 Crore (including interest up to 31.05.2021 of Rs 277.52 Crore) to MMTC. CBI has filed a charge sheet against Sukesh Gupta and others in 2014," ED said in a statement.

During ED investigation, it was found that Sukesh Gupta colluded with the various officers of MMTC Hyderabad and painted a wrong picture of his accounts and kept on lifting Gold to carry on its business as usual.

"Where MMTC ultimately suffered a massive loss, the business of Sukesh Gupta flourished and ran with huge profit. On the basis of his business profile, he took loans and struck real estate deals and grew his business in the name of various related companies," ED said.

Ed said all through the investigation, the conduct of Sukesh Gupta has been evasive and non-cooperative and he has failed to discharge the burden of proof imposed on him under the PMLA.

In another case, ED has adjudicated and levied a penalty of around Rs 222 Crore on the MBS Group under FEMA.

Sukesh Gupta also entered into an OTS (One-time settlement) with MMTC in 2019. But as per the latest reports from MMTC, Sukesh Gupta did not deposit any funds and the OTS failed.

ED has now identified 45 immovable properties belonging to him and his related entities and their directors and has provisionally attached these properties under PMLA, 2002 on August 26 to safeguard the proceeds of crime.