Officials detect fictitious account

The Enforcement Directorate, Chennai, has attached fixed deposits worth over ₹143 crore, along with the interest accrued in a case pertaining to Kanishk Gold Pvt. Ltd (KGPL) under the Prevention of Money Laundering Act, 2002. With this, the value of total properties frozen and attached in this case so far stands at ₹191 crore. Earlier this week, the ED froze properties worth ₹48 crore belonging to KGPL.

The Chennai-based firm, which was in the business of manufacturing gold, was under the scanner on a complaint from the general manager of the State Bank of India, Chennai.

The CBI Bank Fraud and Securities Cell, Bengaluru, registered an FIR against the firm, its directors and auditors. As per the investigations, there was misrepresentation/falsification of records and diversion of funds.

According to K.S.V.V. Prasad, joint director, ED Chennai, during further investigations it was noticed that around ₹300 crore was paid by KGPL to one jeweller’s account.

A forensic audit observed that there was no evidence of receipt of gold for the said payments. The said account to which money was credited was used for money laundering earlier too.