ED seizes jewellery worth ₹ 149.10 crore in Sukesh Gupta case

An amount of ₹ 1.96 crore was also seized from five locations during recent searches conducted at five locations

Gold jewellery stocks worth ₹ 149.10 crore and an amount of ₹ 1.96 crore were seized from five locations during recent searches conducted at five locations belonging to MBS Jewellers Private Limited and Musaddilal Gems and Jewels India Private Limited, said Enforcement Directorate authorities on Thursday. 

The ED authorities, according to a statement issued by them, arrested Sukesh Gupta, one of the owners of the companies, two days ago. He was presented before Special PMLA court at Nampally on Wednesday. The magistrate remanded him in judicial custody for 14 days. 

The searches were undertaken as part of the ongoing investigation into MMTC fraud scam. The probe started based on a First Information Report issued by the CBI against Sukesh Gupta and his companies for allegedly defrauding M/s MMTC Limited ( a public sector undertaking) in purchase of gold bullion under Buyer’s Credit Scheme. 

Mr. Sukesh Gupta was accused of conniving with a few officials of MMTC in Hyderabad and lifted gold without Foreign Exchange cover and without adequate security deposits. His dues were regularly misreported to the MMTC head office. Without squaring off the existing losses, his companies continued to lift gold from MMTC for their personal gain, it was alleged. 

With this modus operandi, he allegedly caused loss of ₹ 504.34 crore to MMTC, the CBI said in a charge-sheet filed against him, according to the statement. Further investigation by the ED revealed that the businessman colluded with various officers of MMTC in Hyderabad painting a wrong picture of his account. Thus, he went on lifting huge sums of gold from MMTC resulting in a massive loss to the latter, the note said. 

Eventually, the businessman entered into a One Time Settlement (OTS) with MMTC. However, he did not comply with the conditions of the OTS and thus the OTS too failed.