Mumbai: The Economic Offences Wing (EOW) of the Mumbai police has booked directors of Auro Gold Jewellery Pvt. Ltd. for allegedly duping the IDBI Bank to the tune of ₹31.29 crore. The firm had allegedly availed a loan from the bank, but diverted the money for purposes other than the ones for which the loan was taken, said the police complaint.
The FIR was registered on Friday based on the complaint lodged by the bank’s senior executive Sanjeev Kumar Satpal against Auro Gold Jewellery (AGIL), its directors Amritlal Gulabchand Jain (now deceased), Ritesh Amritlal Jain and the chief finance officer of the firm, for criminal breach of trust, cheating and forgery.
According to the complaint, the jewellery firm’s directors and others had between 2011-14 availed loans of ₹31.29 crore in the form of working capital and temporary overdraft (TOD) facility. The accused, however, did not utilise the loan amount in terms of the loan agreement and diverted it to other parties through vendors and then used it for their own benefit.
“The complainant has alleged that the accused submitted forged documents to the bank and also carried out suspicious transactions with some overseas companies,” said an EOW officer. The case against the jeweller was first registered with the Cuffe Parade police station and later transferred to the EOW’s banking-2 unit for further investigation.
“We are in process of collecting documents from the complainant and would try to track the money trail to ascertain the diversion of funds, as alleged by the complainant bank,” said the officer.
Ritesh Jain, who is presently out on bail, is already facing multiple cases by the Central Bureau of Investigation, the Enforcement Directorate and the Mumbai police for alleged money laundering of ₹1,478 crore through a web of shell companies.
In March 2020, Ritesh Jain was nabbed by Mumbai police at the city airport upon his return from Dubai. Later in August 2020, CBI had booked him along with others in a bank fraud case.
In 2016, another case was registered against Jain at NM Joshi Marg police station based on allegations that he and his father had deposited ₹100 crore in shell companies after demonetisation. On the basis of the complaint, ED booked Jain under PMLA Act for allegedly opening bank accounts in the name of dummy companies.
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