ED ATTACHES ASSETS WORTH RS.138 CRORES OF KANISHK GOLD

The Directorate of Enforcement has attached the properties of M/s Kanishk Gold Pvt. Ltd. and the properties of their Managing Director, Shri Bhoopesh Kumar Jain on 14.06.2018 under the Prevention of Money Laundering Act, 2002 as the same are involved in money laundering. A case has been registered by the Enforcement Directorate of Chennai Zone against M/s Kanishk Gold Private Ltd.,(KGPL) and Shri Bhoopesh Kumar Jain along with others and investigation is conducted to identify the crime proceeds and the offenders of money laundering under the provisions of PMLA.

2. Shri Bhoopesh Kumar Jain had unduly enjoyed bank borrowings in the form of Working Capital Credit facilities to the tune of several Crores from 14 Banks of Consortium, for his company M/s Kanishk Gold Pvt. Ltd(KGPL) from the year 2009. They are having their manufacturing facility in Maduranthagam, Kancheepuram District and Gold Jewellary of ‘KRIZZ’ Brand was being manufactured by them. Shri Bhoopesh Kumar Jain had defrauded all the 14 Banks in Consortium with State Bank of India as Lead bank, which is to the tune of Rs.824 Crores. He had committed the alleged offences of forgery, cheating and criminal conspiracy and a FIR was registered by CBI, BS & FC, Bangalore against him, his company and others. The Credit facilities extended to the Company were secured by the primary raw material of Gold Bullions, semi finished goods and finished goods of Gold Jewellary and other stores showing huge stocks, whereas Shri Bhoopesh Kumar Jain had mortgaged several immovable properties with the Consortium Banks as collateral securities. However it was later realized that stock statements were fudged with the help of charted accountants and on inspection by the banks in May 2017, it was found that were there no stock of Gold or jewellary and effectively all the operations came to stand still.

4. During the course of investigation under PMLA, initially on 23.03.2018, the Properties in the form of Land and Building, Plant and Machinery of Manufacturing Unit of KGPL, which were available in the factory premises of KGPL at No.8, Palamathur Village, Uthiramerur Main Road, Natarajapuram, Pukkathurai Village, Kanchipuram District – 603209, totally valued at around Rs.48 Crores were frozen by the Directorate of Enforcement.

5. Further a Provisional Attachment Order was issued under the provisions of Section 5(1) of PMLA, 2002 on 24.04.2018 vide No. 09/2018 attaching properties to the tune of Rs.143.58 Crores, which were identified as proceeds of crime committed by Shri Bhoopesh Kumar Jain along with others and as the same are involved in money laundering.

6. Shri Bhoopesh Kumar Jain, the Managing Director of KGPL, was arrested on 25.05.2018 under the provisions of PMLA, as he is guilty of the offence of Money Laundering and he is under judicial custody in Central Prison, Puzhal, Chennai.

7. The investigation conducted further revealed that Shri Bhoopesh Kumar Jain had purchased immovable properties both in his name and in the name of the company, out of the bank borrowings, obtained by him fraudulently, which were originally meant for the manufacturing facilities of his company. The same immovable properties were subsequently mortgaged to the Banks in consortium for availing more credit facilities, which he had enjoyed by laundering the same. The Directorate of Enforcement has attached the following 14 immovable properties totally valued at Rs.138 Crores, which are involved in money laundering and were used to generate more crime proceeds:

1. Land measuring a total extent of 135 Cents at Pudupakkam Village, Kancheepuram District, belonging to Shri Bhoopesh Kumar Jain.

2. Residential Apartment in Kothari Road, Nungambakkam, Chennai belonging to Shri Bhoopesh Kumar Jain.

3. Flat in the State of Maharashtra belonging to Shri Bhoopesh Kumar Jain.

4. Vacant Land measuring an extent of 2 Acres 5 Cents at Pudupakkam Village, Chengalpattu Taluk, Kancheepuram District, belonging to Shri Bhoopesh Kumar Jain.

5. Land measuring 31 Cents in Kunrathur Village, Sriperumbudur Taluk, Kancheepuram District belonging to M/s Kanishk Gold Pvt. Ltd.

6. Land totally measuring 4 Acres and 9 Cents at Kunrathur Village, Sriperumbudur Taluk, Kancheepuram District, belonging to M/s Kanishk Gold Pvt. Ltd.

7. Land measuring 2 Acres and 38.12 Cents situated in the Revenue village of Pidarithangal, Poonamallee Taluk, Thiruvallur District belonging to M/s Kanishk Gold Pvt. Ltd.

8. Vacant land admeasuring 1.48 Acres at Kolappancheri Village in Poonamallee Taluk, Thiruvallur District belonging to M/s Kanishk Gold Pvt. Ltd.

9. Land admeasuring 1.25 Acres in the Village of Pidarithangal, Poonamallee Taluk and Thiruvallur District belonging to M/s Kanishk Gold Pvt. Ltd.

10. Land with super structure building situated at Pannikulam Village, Karimangalam Taluk, Dharmapuri District measuring 7.09 Acres belonging to M/s Kanishk Gold Pvt. Ltd.

11. Vacant Land admeasuring 83.20 Cents in Muttukadu Village, Thiruporur Taluk, Kancheepuram District belonging to M/s Kanishk Gold Pvt. Ltd.

12. Premises being 2nd Floor portion admeasuring 2290 Sq.Ft of the building “Khazana Plaza” and Cathedral Road, Chennai together with 540 Sq.Ft of undivided share belonging to Shri Bhoopesh Kumar Jain.

13. Office Portion at First Floor, Second Floor, Third Floor and Fourth Floor, having a Plinth Area of 4200 Sq. Ft which together with 25% undivided share of land each in 3 Grounds and 2035 Sq. Ft. at Chamiers Road, Teynampet, Chennai belonging to M/s Kanishk Gold Pvt. Ltd.

14. Land and residential building measuring an extent of 1866 Sq.Ft in Ground, First, Second and Third Floor, each measuring with area of 5318 Sq. Ft., in Siruvallur Village, Perambur, Chennai

Further investigation is in progress.