ED Recovers SBI Assets Worth Rs 79 Crore Linked to Money Laundering
Click to start listening
Synopsis
The Enforcement Directorate (ED) has returned assets worth Rs 79.20 crore to the State Bank of India, linked to a money laundering case involving Musaddilal Jewellers. The move aims to restore financial integrity and combat ongoing financial crimes.
Key Takeaways
- ED recovered Rs 79.20 crore for SBI.
- Case involves Musaddilal Jewellers.
- Demonetised currency deposits investigated.
- Fake customers and invoices were involved.
- Ongoing commitment to financial crime prevention.
Hyderabad, Feb 11 (NationPress) The Enforcement Directorate (ED), Hyderabad Zonal Office, has effectively restored assets valued at Rs 79.20 crore to the State Bank of India related to a money laundering investigation involving Musaddilal Jewellers and others.
Following the ED’s intervention, the State Bank of India (SBI) submitted restitution requests under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002 to the Special PMLA Court for the return of movable assets seized by the ED, Hyderabad Zonal Office.
The Central agency announced on Tuesday that it had requested the Special Court to release the confiscated funds to the legitimate claimant, namely SBI, in the interest of the public. The court, through rulings dated January 6 and February 3, approved the petitions and instructed the release of movable assets in the form of jewellery worth Rs 79.20 crore. This jewellery had been seized from the business premises of Musaddilal Jewellers.
The ED has been conducting an inquiry into a money laundering case against Musaddilal Jewellers and others who had deposited over Rs 111 crore in demonetised currency soon after the demonetisation of high-value notes was announced in 2016.
The investigation uncovered that the demonetised notes were deposited under the guise of receiving advance payments from approximately 6000 counterfeit customers by fabricating fake invoices of less than Rs 2 lakh each. It also came to light that the funds were deposited in several bank accounts and were used to purchase gold bullion, which was later sold. This process yielded further Proceeds of Crime (POC) amounting to Rs 28 crore.
The SBI had provided various credit facilities to Musaddilal Jewellers that were left unpaid, resulting in the loan accounts becoming NPA in July 2019. As of March 14, 2023, Musaddilal had outstanding debts to SBI exceeding Rs 120 crore.
The ED had confiscated movable assets worth Rs 83.30 crore during raids conducted on January 12, 2017, and April 15, 2019. Additionally, a provisional attachment of movable and immovable assets totaling Rs 130.57 crore, including the movable assets worth Rs 83.30 crore seized during the search operations, was executed by the ED during the investigation.
This represents a notable advancement in the ED’s ongoing efforts to reclaim properties for their rightful owners and to ensure that Proceeds of Crime are returned to those impacted. The ED remains dedicated to fighting financial crimes and delivering justice for victims of such offences, as stated by the agency.
