The Central Bureau of Investigation (CBI) registered a case against Jai Corporation Limited and its director Anand Jain pertaining to an alleged Rs 2,434 crore fraud. Acting on a Bombay High Court directive, the case also included Urban Infrastructure Venture Capital, Urban Infrastructure Trustees Ltd and additional parties, as per a report in The Times Of India.
Activist Shoaib Richie Sequeira had filed a petition in the court, alleging misuse and misappropriation of public funds for personal gains, defrauding of investors, round-tripping of funds through shell companies based in tax havens, and creation of dubious invoices, as per the report. It was alleged that Jai Corporation Limited, along with Jain and subsidiaries, fraudulently misappropriated Rs 4,255 crore sourced from financial institutions and investors.
Mr Sequeira lodged two complaints in December 2021 and April 2023 with the Mumbai Police's Economic Offences Wing (EOW) and Enforcement Directorate. Later, the action was forwarded to the Securities and Exchange Board of India in 2023, the Times Of India reported
In communication to the CBI last year, the EOW also said the alleged offences involved thousands of crores of rupees, spanning multiple jurisdictions, involving nationalised banks, a Mauritius-based equity fund and trans-border transactions with the USA, Australia and UAE.
Jai Corporation is engaged in the manufacture of steel, plastic processing and spinning yarn.
