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Winsome diamonds loan default: Hasmukh Shah remanded in CBI custody

Press Trust of India  |  Mumbai 

A special today remanded Hasmukh Shah, a former and authorised signatory of the Forever Precious and (FPJDL), also known as group, to the agency's custody till March 26.

The group has allegedly defaulted on loans worth thousands of crores.

The CBI told the court that the FPJDL was engaged in production facilities for cutting and polishing of diamonds and for manufacture of plain and studded gold

Shah, believed to be the man Friday of Jatin Mehta, an absconding accused in the case, was arrested here yesterday.

The FPJDL borrowed from a consortium of various banks led by the (PNB), it told the court.

Canara Bank, of the consortium, is the complainant in the case.

In March 2012, the Management Committee of sanctioned over Rs 160 crore of fund-based and non-fund based limit to the FPJDL, the agency said in its remand application.

Out of the sanctioned non-fund based limit, the company opened various Standby Letters of Credit (SBLC) in favour of various bullion banks, it stated.

The company purchased gold from these abroad - The Bank of Nova Scotia, and - against these SBLCs.

Later, this gold was processed and sent to 13 buyers in the UAE, the CBI stated.

The company also failed to make the payment for the gold imported on the strength of SBLC, the agency said.

"In this regard, the company has taken plea that export proceeds have not been received from (which) resulted in invoking the SBLCs by that cost wrongful loss of Rs 146.35 crore to

"was a very close confidante of Jatin Mehta, promoter and guarantor of Forever Precious and Shah is a former of the company and also one of the authorised signatories," the agency stated.

As per the CBI, Shah instructed and forced other employees of the FPJDL for becoming authorised signatories and signed documents related to the opening of SBLCs.

He obtained the signatures on various documents to be submitted before banks for availing credit facilities and subsequently co-ordinated with them, it said.

The agency stated that Shah was coordinating all exports being done from and units of the company and was giving directions to the unit heads concerned.

"The CBI had registered 11 cases against and there is a total financial loss of Rs 4625.43 crore," said special CBI Limosine A.

He said custodial interrogation of Shah was necessary to understand his modus operandi and to locate relevant documents.

The said they wanted to understand the overseas transactions happened in Dubai, Singapore, Hong Kong, as Shah had visited these places.

"On the basis of investigation conducted so far, there is a strong reason to believe that Shah has information about the funds siphoned off by Mehta," said Limosine.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 13 2018. 19:50 IST