Hyderabad: The Enforcement Branch (ED) has issued an Interim Seizure Order (PA) seizing nine properties belonging to M/s Ghanshyamdas Gems & Jewels and its managing partner Sanjay Agarwal, under the Prevention of Corruption Act 2002 money laundering (PMLA), in a case of fraudulent use of a State Bank of India gold loan by using fake bank guarantees and fake bank letters to embezzle and misappropriate the mortgaged gold stock. The defendants are responsible for a total loan fraud of around Rs 90 Crore.
The ED attached properties include farmland in Shamshabad and Tellapur, land in Raidurgam, villa in Kompally and a 1000 square meter villa in the posh locality of Jubilee Hills, and their total value is Rs. 9.5 crores
ED initiated a money laundering investigation based on FIR dated 19.10.2011 registered by CBI, BS&FC, Bangalore against M/s Ghanshyamdas
Gems & Jewels and its partners for fraudulently inducing SBI to release 250kg of metallic gold based on false bank guarantees submitted by Sanjay
Agarwal, allegedly issued by the Punjab National Bank. Officials said the investigation revealed that when news of the fraud became public, Sanjay Agarwal and his brothers Ajay Kumar and Vinay Kumar removed all gold stock from their store located in Abids, Hyderabad and India. sold on the local market in cash. This stock was mortgaged to PNB.
The allegedly illegal money generated by them was then invested in a new venture opened in December 2012 by Sanjay Agarwal on behalf of his wife. Later, he also opened three other businesses in the name of his brothers and one of his employees. Large unexplained cash deposits were reportedly discovered in several bank accounts opened in the names of members of his family and companies controlled by him.
ED officials maintained that the investigation revealed that Sanjay Agarwal obtained a passport under a false identity of ‘Srikanth Gupta’ and obtained a passport issued and traveled abroad several times and opened several accounts banks to launder his ill-gotten money. The money trail further led ED officials to the Benami property acquired in the name of one of its employees, Avinash Soni.
Previously, ED arrested Sanjay Agarwal on February 11 and provisionally seized nine properties, belonging to Sanjay Agarwal, his family members and benamis vide PAO No. 11/2022 dated April 11. On the same day, ED also filed a complaint against his attorney. against M/s Ghanshyamdas Gems & Jewels and its Managing Partner Sanjay Agarwal in MSJ Court, Nampally, Hyderabad with a prayer for confiscating the attached proceeds of crime and punishing the culprits under Section 4 of the PMLA.
Further investigation into the role of other defendants is ongoing.