ED raids MBS Group, Musadddilal Jewellers, seizes diamonds, gold

Hyderabad: The Directorate of Enforcement on Tuesday raided MBS and Musadddilal Jewellers.

After the raid that lasted for almost 30 hours, the agency alleged that it found several irregularities and violations.

According to a report published in New Indian Express, the enforcement agency has seized gold and diamonds worth Rs. 100 crores from MBS.

It is also reported that yesterday at around 9 pm, director of MBS jeweler Sukesh Gupta was picked up for questioning by ED sleuths.

Why raids were conducted?

The raids were conducted in connection with the money laundering and Foreign Exchange Management Act (FEMA).

The MBS group and its director Sukesh Gupta and sister companies had obtained gold from MMTC on credit to maintain forex positions without paying an additional five percent tax thereby causing loss to the corporation, the official said.

In 2014, the Directorate of Enforcement registered cases based on an FIR filed by the CBI.