The raids in Hyderabad and Vijaywada were carried out on MBS Jewellers, Musaddilal Gems & Jewels India, and its directors Sukesh Gupta and Anurag Gupta, — accused of fraud in active connivance with a few officials of MMTC Hyderabad — on October 17.
The Enforcement Directorate (ED) on Thursday, October 20, said it carried out search operations at five locations in Hyderabad and Vijaywada with respect to an investigation relating to the Metals and Minerals Trading Corporation (MMTC) fraud scam.
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The search operation was carried out on MBS Jewellers Private Ltd, Musaddilal Gems & Jewels India Private Ltd, its directors Sukesh Gupta and Anurag Gupta, on October 17, 2022, and seized jewellery stocks of Rs 149.10 crore and cash of Rs 1.96 crore.
The ED case against the accused was made out on the basis of a Hyderabad CBI Anti-Corruption Bureau FIR and charge sheet, which was filed in 2014 against Sukesh Gupta and others for “defrauding” MMTC Ltd in the purchase of gold bullion under the buyer's credit scheme.
Sukesh, in active connivance with a few officials of MMTC Hyderabad, had continuously lifted gold without forex cover and without adequate security deposits and his dues were consistently misreported to the MMTC head office.
Without squaring off the existing losses, his firms continued lifting more and more gold from MMTC for personal gain and thereby, ultimately caused a loss of public money of Rs 504.34 crore to MMTC.
During the ED investigation, it was found that Sukesh colluded with the various officers of MMTC Hyderabad and painted a false picture of his account and kept on lifting more gold to carry as if it was business as usual; and MMTC ultimately suffered a massive loss.
Sukesh Gupta also entered into an OTS (one-time settlement) with MMTC in 2019. However, MMTC confirmed that he did not comply with the OTS conditions and that the OTS has failed.
He was arrested by ED on October 18, 2022, and was produced before the Special PMLA Court at Nampally, Hyderabad on October 19, 2022, and was sent to 14 days of judicial custody. CBI has filed a charge sheet against Sukesh and others and further investigation is on.