Hyderabad: The Directorate of Enforcement (ED), Hyderabad Zonal Office, has filed a prosecution complaint (PC) before the Special Court (PMLA), Hyderabad, against MBS Jewellers Private Limited, MBS Jewellers, Sukesh Gupta, Musaddilal Gems & Jewels (India), Anurag Gupta, Karri Ravi Prasad, and Valluri Mohan Rao under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The court took cognisance of the prosecution complaint on 1 March.
A prosecution complaint is an equivalent term for a charge sheet under PMLA cases.
The ED initiated an investigation based on an FIR registered by CBI, ACB, Hyderabad, against Sukesh Gupta and his companies for allegedly defrauding MMTC Limited (a public sector enterprise) to the tune of Rs 504.34 crore in the purchase of gold bullion under the buyer’s credit scheme.
Upon completing the investigation, CBI, ACB, Hyderabad, filed a charge sheet against Sukesh Gupta and others.
Investigation reveals MO
The ED’s investigation allegedly revealed that Sukesh Gupta, using his companies, received gold bullion from MMTC Limited on a buyer’s credit loan basis by keeping the forex position open without paying the additional 5 percent margin money, causing MMTC Limited a loss of Rs 549.06 crore.
The investigation allegedly revealed that Sukesh Gupta was the mastermind of the entire scam, conspiring with others to cheat MMTC and causing it losses.
Despite the huge payables to MMTC, the MBS Group’s business continued uninterrupted, utilising the gold for its profitable ventures. Sukesh Gupta’s companies were not supposed to receive any further gold from MMTC until clearing older dues. However, instead of settling outstanding payments and providing fresh adequate forex cover or security, Sukesh Gupta colluded with various MMTC Hyderabad officers and others, misrepresented his accounts, and continued lifting more gold to carry on his business as usual.
The ED’s investigation also revealed that Sukesh Gupta, using his MBS Group of companies, sold the gold bullion and jewellery to various customers and further diverted and siphoned off the proceeds through different MBS Group entities and their directors, partners, and proprietors.
The ED had earlier conducted search operations on 16 October 2018, 12 July 2019, and 17 October 2022 at Sukesh Gupta’s residential premises and the business premises of his companies, seizing jewellery worth Rs. 149.10 crore and cash amounting to Rs 1.96 crore. Further, properties worth Rs 363.50 crore belonging to Sukesh Gupta and related entities were attached by the ED via a provisional attachment order dated 26 August 2021.
Further investigation is underway.
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