Has the ED filed a prosecution complaint against LMPL and others for gold import forgery?
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Synopsis
In a significant legal move, the Enforcement Directorate has filed a complaint against Lichen Metals Private Limited and others for alleged forgery in a duty-free gold import scheme. This case not only highlights issues of corruption but also raises questions concerning accountability in financial transactions.
Key Takeaways
- ED files prosecution against LMPL for forgery.
- Allegations involve duty-free gold import scheme.
- Investigation initiated based on CBI charge sheet.
- LMPL reportedly gained Rs 31.93 crore illegitimately.
- Forward exchange cover fraudulently secured for $100 million.
Kolkata, July 12 (NationPress) The Enforcement Directorate (ED) has lodged a prosecution complaint under the Prevention of Money Laundering Act (PMLA) against Lichen Metals Private Limited (LMPL) and four additional individuals before a special court in Kolkata, accusing them of forgery linked to the duty-free import of gold, an official reported on Saturday.
As stated by the ED, the agency initiated an investigation based on a charge sheet filed by the Central Bureau of Investigation (CBI) under various sections of the former Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988, targeting LMPL and other suspected persons and entities.
Detailing the forgery, the ED's statement indicated that on behalf of LMPL, Shyam Sunder Kedia requested the branch manager/general manager of the State Trading Corporation (STC) office in Kolkata for a duty-free import of 2,000 kilograms of gold, with a delivery deadline set for April 30, 2012.
Investigations uncovered that based on this provisional requirement from LMPL dated July 25, 2011, which was never accepted by the overseas bullion suppliers as stipulated in the agreement, officials from STC’s Kolkata office, in collusion with the then branch manager and Shyam Sunder Kedia, misused their official positions by dividing the 2,000 kilograms import request into two separate requests of 1,000 kilograms each.
The statement further explained that this maneuver was executed to keep the transactions within the branch manager's authority, thereby circumventing the mandatory approval from STC’s corporate office per the established financial authority of both the branch and corporate offices.
“Utilizing these forged requests, STC officials deceitfully obtained a forward exchange cover for $100 million from SBI, aimed at safeguarding against exchange rate fluctuations for gold that was never actually imported,” the statement disclosed.
The ED's investigation also indicated that, despite no gold being imported, LMPL, in collaboration with STC officials, attempted to cancel the forward cover merely two months later, resulting in an illegitimate gain of Rs 31.93 crore for LMPL.
It has been reported that the ED had previously provisionally attached movable assets worth Rs 31.93 crore belonging to LMPL under the provisions of PMLA, 2002, on August 28, 2024.
Point of View
I believe this case underscores the critical need for transparency and accountability in business practices. The allegations against LMPL and its associates highlight serious issues that must be addressed to uphold the integrity of our financial systems. We at NationPress are committed to bringing you the facts and ensuring that justice is served.
NationPress
22/07/2025
Frequently Asked Questions
What is the main allegation against LMPL?
The main allegation is that Lichen Metals Private Limited and four others engaged in forgery related to the duty-free import of gold.
What law has been invoked in this case?
The Enforcement Directorate has filed a prosecution complaint under the Prevention of Money Laundering Act (PMLA).
How much gold was involved in the alleged forgery?
The case involves a request for the duty-free import of 2,000 kilograms of gold.
What financial gain is associated with this case?
LMPL allegedly secured a wrongful gain of Rs 31.93 crore from these transactions.
What actions has the ED taken against LMPL?
The ED has provisionally attached movable assets worth Rs 31.93 crore belonging to LMPL.
