Four jewellers booked for cheating SBI of Rs 65 cr

The Central Bureau of Investigation (CBI) on Friday said it has registered a case against four jewellers for allegedly causing a loss of Rs 65 crore to the State Bank of India (SBI), an official said.

N. Ashok, N. Balaji, V. Nagendran and Manoharan, promoters and directors of Tamil Nadu's Coimbatore-based Lavanya Gold Jewels India Private Limited, have been booked by the CBI for cheating and criminal conspiracy under sections of the Indian Penal Code and the Prevention of Corruption Act.

Lavanya Gold Jewels, whose name is also mentioned in the CBI's FIR, have outlets at three places in Coimbatore.

The investigating agency took over the case from the Tamil Nadu Police and filed an FIR on the directions of the Madras High Court on February 2, 2016. The Tamil Nadu Police had registered a criminal case in the matter on June 5, 2013, against the four accused.

"It was alleged that Lavanya Gold Jewels was sanctioned with credit facilities of Rs 60 crore on April 17, 2012, by the competent authority of the bank for the purpose of manufacture and sale of gold ornaments, antique jewellery to reputed clients and other local market players. The credit facilities were overdue for renewal since April 16, 2013," a CBI official said.

The official said the credit facilities were secured by the hypothecation of gold and jewelleries, and collaterally secured by deposit of title deeds belonging to the accused promoter-directors.

"The promoter-directors allegedly decamped with gold ornaments pledged to the bank since June 2013. The frequent contact with them for regularising the account did not yield any response and they also allegedly absconded with their family members, defrauding the State Bank of India to the tune of Rs 65 crore," he said.

The CBI on Friday also conducted searches at various locations in Chennai and Coimbatore, including the office and residential premises of the accused which led to the recovery of hard discs, lap top and certain sets of incriminating documents.

--IANS

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