Probe Agency ED said it seized jewellery worth Rs 149.10 crore after raids at 5 locations.
The Enforcement Directorate (ED) on Thursday said it seized jewellery worth Rs 149.10 crore and recovered Rs 1.96 crore in cash during a recent search operation at five locations in Hyderabad and Vijaywada in a case related to alleged cheating with MMTC.
Search operations were conducted at MBS Jewellers Pvt Ltd and Musaddilal Gems and Jewels India Pvt Ltd, and properties of directors Sukesh Gupta and Anurag Gupta in Hyderabad and Vijaywada on Monday.
Sukesh Gupta was arrested by ED on Tuesday. He was produced before the Special prevention of money laundering act (PMLA) Court at Nampally, Hyderabad, on Wednesday and was sent to 14-day judicial custody.
The probe agency initiated an investigation on the basis of the first information report (FIR) registered by the central Bureau of Investigation (CBI) and Anti-Corruption Bureau (ACB), Hyderabad, against Sukesh Gupta and his companies for defrauding a public sector enterprise -- MMTC Ltd -- in the purchase of gold bullion under Buyer's Credit Scheme.
The agency said Sukesh Gupta, in active connivance with a few officials of MMTC Hyderabad, had continuously lifted gold without forex cover and without adequate security deposits.
Sukesh's dues were consistently mis-reported to the MMTC head office and without squaring off the existing losses, his firms continued lifting more and more gold from MMTC for their personal gain, the agency said. Thereby, it ultimately caused a loss of public money to the tune of Rs 504.34 crore to the public sector enterprise. CBI has filed a charge sheet against Sukesh Gupta and others.
During the ED investigation, it was found that Sukesh Gupta colluded with the various officers of MMTC Hyderabad and painted a wrong picture of his account and kept on lifting more and more gold to carry on its business as usual and MMTC ultimately suffered a massive loss.
Sukesh Gupta also entered into one-time settlement (OTS) with MMTC in 2019. However, MMTC confirmed that he did not comply the OTS conditions and the OTS has failed. Further investigation is under progress.
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