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Kolkata firm issued FEMA show cause notice for siphoning off over Rs 7,200 crore

ED claims that Kolkata-based Shree Ganesh Jewellery House (I) Ltd has huge outstanding for the foreign bills drawn on Al Marhaba Trading FZC, Sparkle Jewellery LLC, UAE and Astha Jewellery LLC, UAE which are companies promoted by themselves. 

According to the financial probe agency, promoters of Shree Ganesh Jewellery House (I) Ltd are serial offenders. (Photo: Reuters/Representational image)

A Kolkata-based firm has been issued showcause notice under Foreign Exchange Management (Enforcement) Act in connection with an alleged scam. The Enforcement Directorate (ED) has issued the show cause notice to the firm for allegedly siphoning off Rs 7,220 crore.

The notice has been issued by the Adjudicating Authority, ED Kolkata unit to Shree Ganesh Jewellery House (I) Ltd, its promoters and others “for resorting to unauthorised foreign exchange dealings, holding of foreign exchange outside India and wilfully siphoning off Rs 7,220 crore as export proceeds”.

According to the financial probe agency, promoters of Shree Ganesh Jewellery House (I) Ltd – Nilesh Parekh, Umesh Parekh and Kamlesh Parekh – are serial offenders and various cases are pending against them before Central Bureau of Investigation, Directorate of Revenue Intelligence, Special Economic Zone, Enforcement Directorate and international investigative agencies.

Also Read | Guwahati firm siphoned off funds sanctioned for poor pregnant, lactating women; ED attaches bank account

“A Letter of Request (LR) is pending against the accused from Switzerland. Contravention of Foreign Exchange Management Act has been noticed against their other company, namely Easy Fit Jewellery Pvt Ltd amounting to more than 250 crore earlier also. Shree Ganesh Jewellery House (I) Ltd is one among top 100 wilful defaulters as per RBI,” said the ED.

The probe agency claims that Shree Ganesh Jewellery House (I) Ltd has huge outstanding for the foreign bills drawn on Al Marhaba Trading FZC, Sparkle Jewellery LLC, UAE and Astha Jewellery LLC, UAE which are companies promoted by themselves.

“It implies that public funds availed through banks by the accused were ostensibly routed in the garb of export to foreign entities and the proceeds against the same were parked outside India,” added the ED.

Also Read | Delhi: Businessman arrested for 10 crore fraud, also involved in Rs 25 crore scam

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