Hyderabad based Ghanshayamdas Gems Jewels MD Sanjay Agarwal arrested in 69 Cr fraud case

Hyderabad: Sleuths of Enforcement Directorate (ED) arrested Hyderabad based jewellery Sanjay Agarwal- Managing Partner of Ghanshayamdas Gems and Jewels, in Rs 67 Crore bank fraud case. Having a store in Abids in Hyderabad, Sanjay Agarwal is engaged in wholesale trading of gold.

The crime dates back to 2010 and 2011. Probe found that Agarwal, fraudulently procured gold bullion from State Bank of India by submitting fake forged bank guarantees and covering letters 'purportedly' issued by Punjab National Bank. He then sold the gold bullion in local market to various jewellery and small traders in 'cash'.

Significant to note that, Sanjay Agarwal has cheated two banks- SBI and PNB. PNB fraud-Agarwal and others removed gold and jewellery hypothecated to PNB against a gold loan and caused them a loss of Rs 31.97 Cr. The Central Bureau of Investigation then registered a case against him and others. He further cheated SBI in another fraud case.

The arrest comes months after ED took up investigation into money laundering under the (PMLA)-Act. "Probe found that cash generated was diverted to several other firms floated by Sanjay Agarwal in the name of his wife, brothers and his employees. Later, after default on the gold loan happened, SBI found that the letters were forged. In 2011, Sanjay Agarwal and his brothers Ajay and Vinay clandestinely removed the entire stock of gold and jewellery kept at their store in Abids, Hyderabad '' ED said in a statement.

The stock was already hypothecated to the PNB against gold loan availed by the firm. Sanjay Agarwal was already lodged in Kolkata Jail in another ED case related to diversion of; duty-free export bound gold; into the domestic market. The jeweler was arrested and produced before the Hyderabad court February 11th. He has been remanded to 15 days of judicial custody.