The Adjudicating Authority under the Foreign Exchange Management Act (FEMA) has issued a show cause notice to Shree Ganesh Jewellery House (I) Limited, its promoters and others for allegedly siphoning off ₹7,220 crore under the garb of export proceeds.
The company is one of the top 100 wilful defaulters as per the RBI.
According to the agency, the accused persons resorted to unauthorised dealings and holding foreign exchange overseas by ‘wilfully’ diverting the funds.
Promoters of the Kolkata-based jewellery house, Nilesh Parekh, Umesh Parekh and Kamlesh Parekh, are alleged serial offenders. Multiple cases are pending against them in agencies like the CBI, the Directorate of Revenue Intelligence and the ED, even internationally, it said.
“A letter of request is pending against them from Switzerland. Earlier also, FEMA contravention by their other company, Easy Fit Jewellery Private Limited, amounting to more than ₹250 crore, was noticed,” said an ED official.
The ED probe revealed that Shree Ganesh Jewellery House (I) Limited had a huge outstanding for the foreign bills drawn on Al Marhaba Trading FZC, Sparkle Jewellery LLC, UAE, and Astha Jewellery LLC, UAE, the companies promoted by the accused.
“It indicates that the bank credit facilities availed by it were routed on the pretext of exports to these foreign entities and others and the proceeds against the same were parked outside India,” the official said.
