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/ Crime / Ed Returns Musaddilal Jewellery

ED returns seized jewellery worth Rs 79 crore to SBI in Musaddilal jewellers case

The Enforcement Directorate (ED) in Hyderabad has returned properties worth Rs. 79.20 Crore to the State Bank of India (SBI) in a money laundering case against M/s Musaddilal Jewellers Pvt. Ltd. This follows an investigation by ED into the jewellery company's alleged deposit of over Rs. 111 Crore in demonetized currency shortly after the government's announcement of demonetization. ED discovered that the currency was deposited under the guise of advance payments from 6000 fake customers through fraudulent invoices. The investigation further revealed that the funds were used to purchase gold bullion, which was later sold, generating proceeds of crime (POC) worth Rs. 28 Crore. This investigation also uncovered that M/s Musaddilal had outstanding dues to SBI exceeding Rs. 120 Crore. As part of the investigation, ED previously seized properties worth Rs. 83.30 Crore during searches in 2017 and 2019. They also provisionally attached properties worth Rs. 130.57 Crore, including the Rs. 83.30 Crore seized during searches. The return of the properties to SBI is a significant step in ED's efforts to restore assets to their rightful owners and ensure the recovery of proceeds of crime.
02:49 PM Feb 11, 2025 IST | Durga Prasad Sunku
Updated At : 02:49 PM Feb 11, 2025 IST
The Enforcement Directorate (ED) in Hyderabad has returned properties worth Rs. 79.20 Crore to the State Bank of India (SBI) in a money laundering case against M/s Musaddilal Jewellers Pvt. Ltd. This follows an investigation by ED into the jewellery company's alleged deposit of over Rs. 111 Crore in demonetized currency shortly after the government's announcement of demonetization. ED discovered that the currency was deposited under the guise of advance payments from 6000 fake customers through fraudulent invoices. The investigation further revealed that the funds were used to purchase gold bullion, which was later sold, generating proceeds of crime (POC) worth Rs. 28 Crore. This investigation also uncovered that M/s Musaddilal had outstanding dues to SBI exceeding Rs. 120 Crore. As part of the investigation, ED previously seized properties worth Rs. 83.30 Crore during searches in 2017 and 2019. They also provisionally attached properties worth Rs. 130.57 Crore, including the Rs. 83.30 Crore seized during searches. The return of the properties to SBI is a significant step in ED's efforts to restore assets to their rightful owners and ensure the recovery of proceeds of crime.
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Hyderabad: Enforcement Directorate(ED), Hyderabad has restituted properties worth Rs. 79.20 Crore to the State Bank of India in a money laundering case against M/s Musaddilal Jewellers Pvt. Ltd & others.

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Based on the money laundering investigation agency’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 the release of movable properties seized by the ED, Hyderabad Zonal Office.

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Subsequently, the central agency urged the Court to release the seized amount to the rightful claimant, SBI, in public interest. The Court allowed the petitions and released moveable properties in the form of jewellery worth Rs. 79.20 Crore being closed stock seized from commercial premises of M/s Musaddilal Jewellers Pvt. Ltd.

ED has been investigating a money laundering case against Musaddilal Jewellers Pvt. Ltd. & others who deposited overRs. 111 Crore in demonetized currency immediately after the demonetization of high-value notes was declared. Premier investigation agency revealed the currency was deposited under the pretext of advance money from around 6000 fake customers by creating fake invoices of less than Rs. 2 Lakh each, read the statement released by ED.

Furthermore, the ED investigation revealed that the amount was deposited in various bank accounts and was utilized towards the purchase of gold bullion, which was sold, generating Proceeds of Crime (POC) of Rs. 28 Crore. The ED investigation also revealed that SBI had extended various credit facilities to M/s 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 14, March,2023.

ED had earlier seized movable properties worth Rs. 83.30 Crore during searches conducted on 12 January 2017 and 15 April 2019. During the course of investigation, ED also did provisional attachment of movable and immovable properties worth Rs. 130.57 Crore, including movable properties worth Rs. 83.30 Crore seized during search operations.

This marks a significant step in ED’s efforts to restore properties to their rightful claimants and ensure POC are returned to those affected.

Tags :
Enforcement DirectorateHyderabadmoney laundering caseMusaddilal Jewellers
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