ED files charge sheet in demonetisation case against Hyderabad-based jewellery, bullion dealers

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New Delhi, Jun 1 (PTI) The Enforcement Directorate (ED) has filed its final charge sheet against some Hyderabad-based jewellery and bullion dealers in a case where Rs 111 crore funds were allegedly laundered post the 2016 demonetisation of two high-value currencies in the country.

The central probe agency has pressed criminal charges under sections of the Prevention of Money Laundering Act (PMLA) against Kailash Gupta, Nitin Gupta, Nikhil Gupta and their firms, their chartered accountants, gold bullion dealers, and also the major contributors of the black money, who were involved in this fraud, an ED statement said. 'A total of 41 entities/individuals have been charged with the offence of money laundering, as they knowingly layered the amount (of Rs 111 crore) into the banks post the demonetisation exercise that took place on November 8, 2016,' it said.

The charge sheet was filed on Monday and before this latest prosecution complaint, two such complaints were filed by the ED before a special PMLA court in Hyderabad.

This the final charge sheet in this case, it said.

The ED probe is against jewellery and bullion firms like Musaddilal Gems and Jewels Private Limited, Vaishnavi Bullion Private Limited, Musaddilal Jewellers Private Limited and others was initiated on the basis of an FIR registered by Telangana Police in Hyderabad. Probe found, the statement said, that 'the accused used the demonetisation scheme to bleach their unaccounted black money into white money and also to earn windfall profit.' 'They blatantly created around 5,911 fictitious sale invoices attributing fake sales during the short relaxation period between 8 PM-12 PM (on November 8, 2016) and deposited a whooping amount of Rs 111 crore in their bank accounts.

'The major part of the deposited black money belonged to the main accused and his family members and remaining was solicited from others on commission basis,' it said.

They used a part of the amount to repay their loans, pay due taxes and used the remaining amount to buy gold/bullion, it alleged.

'This gold was further sold at a very high rate to earn even more profits. ED has done extensive fund trail investigation and found that the total proceeds of crime generated in this scam was Rs 139 crore,' the agency claimed.

Assets worth Rs 130.57 crore, including jewellery of Rs 86 crore, was attached by the agency in February this year as part of the investigation in the case. PTI NES ZMN