ED completes restitution of properties worth Rs 79.20 cr to SBI in Hyderabad-based jeweller's money laundering case

Hyderabad: Enforcement Directorate (ED), Hyderabad Zonal Office completed the process of restitution of properties worth Rs 79.20 crore to the State Bank of India in connection with a money laundering case against M/s Musaddilal Jewellers Pvt. Ltd & others.

Based on ED’s initiative, the State Bank of India (SBI) filed restitution applications under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002 before the Special PMLA Court of the Metropolitan Sessions Judge, Nampally, Hyderabad for release of moveable properties seized by the ED, Hyderabad Zonal Office.

ED, Hyderabad Zonal Office urged the court to release the seized amount to the rightful claimant, i.e. SBI in public interest. The court in its orders recently allowed the said petitions and ordered for release of moveable properties in the form of jewellery worth Rs 79.20 crore being closing stock seized from commercial premises of M/s Musaddilal Jewellers Pvt. Ltd.

ED was investigating a money laundering case against Musaddilal Jewellers Pvt. Ltd. & others who had deposited more than Rs 111 crore in demonetised currency immediately after the demonetisation of high value notes was declared.

ED investigation revealed that the said demonetised currency was deposited under the pretext of receipt of advance money from around 6,000 fake customers by creating fake invoices of less than Rs 2 Lakh each. ED investigation also revealed that the said amount was deposited in various bank accounts and was utilised towards purchase of gold bullion which was further sold.

In this process, further Proceeds of Crime (POC) of Rs 28 crore were derived from such sale. ED investigation also revealed that SBI had extended various credit facilities to Musaddilal Jewellers Pvt. Ltd. which remained unpaid and the loan accounts turned NPA in July 2019; that M/s Musaddilal had outstanding dues to SBI of over Rs 120 crore as on March 14, 2023.

ED had earlier seized movable properties worth Rs 83.30 crore during searches conducted in 2017 and 2019. Provisional attachment of movable and immovable properties to the tune of Rs 130.57 crore, including movable properties worth Rs. 83.30 crore seized during search operations, was also done by ED during the course of investigation.