A case has been filed by the CBI against Chennai-based jeweller Kanishk Gold Pvt Ltd for allegedly cheating a consortium of 14 banks of Rs. 824 crore. The consortium is led by State Bank of India. The CBI filed the case on a complaint from SBI on behalf of the consortium.
The CBI has booked the company Kanishk Gold, its directors Bhoopesh Kumar Jain, Neeta Jain, Tejraj Achha, Ajay Kumar Jain and Sumit Kedia as well as certain unidentified government officers. The CBI then carried out searches at officers and homes of the promoters of Kanishk Gold as well.
The complaint further stated that the company made gold jewellery marketed under the brand ‘Krizz,’ which were then sold through distributors up until 2014. In 2015, however, it changed its business model to B2B (business-to-business) and started supplying to large retail jewellers.
The loan accounts of the company were then taken over by SBI from ICICI Bank in 2008 and the banking arrangement for the same was converted into a multiple banking system in March 2011.
SBI alleged that the fraud is almost of Rs. 824.15 crore but the security available with it to cover the loss is Rs. 156.65 crore.
CBI officials said they were in touch with the bank for detailed information about the complaint.
SBI accused Kanishk Gold of having “misrepresented and falsified” the company’s records and financial statements to take credit and further alleged that Kanishk Gold and its directors diverted the funds in a move that was against the interests of the bank.
