Economic Fraud
Ex-MP Ishwarlal Jain, Son Named in Rs 352 Crore Bank Fraud Prosecution by ED
The Enforcement Directorate has filed a prosecution complaint against jewellery firms and their promoters, including ex-MP Ishwarlal Jain and his son, in connection with a Rs 352.49 crore bank fraud. The accused allegedly submitted fake financials to obtain loans and engaged in fraudulent transactions.
Nagpur: The Enforcement Directorate (ED) has filed a prosecution complaint against three jewellery firms and their promoters, including former Member of Parliament (MP) Ishwarlal Jain and his son, former Member of the Legislative Council (MLC) Manish Jain. The complaint, filed on July 26, relates to a multi-crore bank fraud case involving the State Bank of India (SBI).
The ED’s investigation revealed that the accused firms, Rajmal Lakhichand Jewelers Pvt Ltd, R L Gold Pvt Ltd, and Manraj Jewelers Pvt Ltd, and their promoters/directors Ishwarlal Jain and Manish Jain, along with other associates, were involved in criminal conspiracy, cheating, forgery, and criminal misconduct. They are accused of defrauding the bank to the tune of Rs 352.49 crore by submitting fake financials to obtain loans, engaging in round-tripping of transactions, and booking bogus sale-purchase transactions to inflate their financial statements.
The ED initiated the investigation based on three FIRs registered by the Central Bureau of Investigation (CBI). According to the FIRs, the promoters had siphoned off the loan proceeds for investments in real estate properties, in collusion with the auditors of the companies. They were also found to have sold parts of the mortgaged properties without the bank’s consent and destroyed incriminating data to prevent scrutiny of their financial dealings.
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The ED conducted search operations at 13 official and residential premises of the Rajmal Lakhichand group in Jalgaon, Nashik, and Thane in Maharashtra, seizing gold, silver, and diamond jewellery worth ₹24.36 crore, and cash amounting to Rs 1.121 crore along with various incriminating documents. Investigative findings revealed fictitious stock entries, use of shell companies, and employment of dummy directors.
The central probe agency provisionally attached movable and immovable assets valued at Rs 315.60 crore in October last year. The attached assets include benami properties acquired by the Jains.
The ED has now taken cognizance of the prosecution complaint, and the case will proceed in a special court in Nagpur under the Prevention of Money Laundering Act.
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