CBI searches properties of Chennai based firm for cheating 14 banks

The Central Bureau of Investigation (CBI) on Wednesday conducted searches at various properties of Chennai based Kanishk Gold Pvt Ltd and accused persons for allegedly cheating 14 banks.

The searches were conducted in their premises on a complaint from the State Bank of India (SBI) on behalf of a consortium of 14 banks for cheating, to an extent of approximately Rs. 824.15 crore.

The CBI has registered a case against Bhoopesh Kumar Jain, promoter director of Kanishk Gold, director of some other Chennai based firms, few unknown public servants and others.

The investigative agency has asked the accused persons to join the investigation.

As per information, Kanishk Gold Pvt Ltd was allegedly indulged in the business of manufacturing gold jewellery, which was marketed and sold to various retailers under a brand name.

The company was getting credit facilities from 14 banks led by the SBI.

The nature of the limit was Working Capital facility sanctioned to the tune of approximately Rs.747 crore.

Apart from this, the company had also availed certain Term Loan limits from SBI.

Falsification of records and the removal of the stocks secured to the lenders were also recorded.

It was further alleged that there were anomalies in the financial statements such as in the quantity of stock carried forward to the next year, an anomaly in the sales register, diversion of funds and unusual transactions with the related parties.

The CBI is further investigating the matter.