Hyderabad: Directorate of Enforcement announces arrest of MBS Jewellers directors

Sukesh Gupta was arrested on October 18, produced before the Special PMLA Court at Nampally here on Wednesday and sent to 14 days of judicial custody, ED said.

Hyderabad: The Directorate of Enforcement (ED) on Thursday issued a press release, saying it had conducted a search operation on MBS Jewellers Private Limited, Musaddilal Gems & Jewels India Private Limited, its directors Sukesh Gupta and Anurag Gupta on October 17 at five locations in Hyderabad and Vijayawada and seized jewellery stocks of Rs.149.10 crore and cash of Rs.1.96 crore in the MMTC fraud scam.

Sukesh Gupta was arrested on October 18, produced before the Special PMLA Court at Nampally here on Wednesday and sent to 14 days of judicial custody, it said.

The ED had initiated investigation on the basis of an FIR registered by CBI, ACB, Hyderabad against Sukesh Gupta and his companies for defrauding public sector enterprise MMTC Limited in the purchase of gold bullion under the Buyer’s Credit Scheme. Sukesh Gupta, 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 mis-reported to the MMTC Head Office and without squaring off the existing losses, his firms continued lifting more gold from MMTC for their personal gain and thereby, causing loss of public money to the tune of Rs 504.34 Crore to MMTC. CBI has filed a charge sheet against Sukesh Gupta and others, the press release said.

During ED investigation, it was found that Sukesh Gupta colluded with the various officers of MMTC Hyderabad and painted a wrong picture of his account and kept on lifting more gold to carry on 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 Sukesh Gupta did not comply the OTS conditions and that the OTS had failed.

Further investigation is under progress.