The Enforcement Directorate (ED) has filed a prosecution complaint in the infamous demonetisation scam in which cash of approximately Rs 111 crore was deposited immediately after the announcement of demonetisation on November 8, 2016, by the firms of Kailash Gupta, Nitin Gupta and Nikhil Gupta.
On the basis of a First Information Report (FIR) registered by Telangana State Police, Hyderabad, the ED initiated a money-laundering investigation against M/s Musaddilal Gems and Jewels Private Limited, M/s Vaishnavi Bullion Private Limited, M/s Musaddilal Jewellers Private Limited, and others.
The investigation revealed that the accused used the demonetisation scheme to bleach their unaccounted black money into white money and to also earn windfall profit.
"They blatantly created around 5,911 fictitious sale invoices attributing fake sales during the short relaxation period between 8 pm to 12 pm and deposited a whopping amount of Rs 111 crore in their bank accounts. The major part of deposited black money belonged to the main accused and his family members and the remaining were solicited from others on a commission basis. They used a part of the amount to repay their loans, pay due taxes, and used the remaining amount to buy "gold (bullion)". This gold was further sold at a very high rate to earn even more profits, the ED informed.
After an extensive fund trail investigation by the ED, it was found that the total proceeds of crime generated in this scam were Rs 139 crore.
ED has also seized properties worth Rs 130.57 crore, both movable and immovable, including jewellery worth Rs 86 crore during its search.
Two prosecution complaints were filed earlier by the department against 13 individuals/entities, the investigation agency said.
On May 31, the ED had filed the final prosecution complaint, after extensive investigation, and charged main accused Kailash Gupta, Nitin Gupta, Nikhil Gupta, and their firms, their chartered accountants, the gold bullion dealers, and also the major contributors of the black money, who were involved in this fraud.
A total of 41 entities/individuals have been charged with the offense of money laundering, as they knowingly layered amount into the bank accounts of the Musaddilal Group to claim the same as untainted money, then converted it into gold bullion which was further sold for profit.