Enforcement Directorate Executes Nationwide Searches in Multi-Crore Bank Fraud and Money Laundering Case Involving Shree Ganesh Jewellery House Ltd.

Headnote:

The Enforcement Directorate (ED), Kolkata Zonal Office, carried out coordinated search operations at 13 locations across West Bengal, Telangana, and Gujarat in connection with the case of M/s Shree Ganesh Jewellery House (I) Ltd., under the Prevention of Money Laundering Act, 2002. The investigation stems from a CBI FIR alleging that the company and its promoters cheated a consortium of 25 banks to the tune of Rs. 2,672 crore. ED’s probe revealed diversion of loan funds into solar projects and complex transactions to conceal ownership and proceeds of crime. Multiple bank accounts were traced and frozen, and incriminating documents and digital records were seized. Earlier, properties worth Rs. 193 crore were provisionally attached, and approximately Rs. 33 crore of funds were frozen during the searches. Investigation is ongoing.

Background:

1. FIR filed by Central Bureau of Investigation (CBI), Bank Fraud & Financial Securities, Kolkata, against M/s Shree Ganesh Jewellery House (I) Ltd. and promoters.
2. Alleged cheating of a consortium of 25 banks to the extent of Rs. 2,672 crore.
3. During 2010–11, promoters diverted approx. Rs. 160 crore of loan funds into solar power projects.
4. Solar projects were later shown as sold to ex-directors and associates to conceal true ownership and proceeds of crime.

Court / Authority Observations / Findings:

1. The ED investigation revealed coordinated efforts to hide illegal proceeds and prevent asset recovery.
2. Searches identified multiple bank accounts of associated companies, which were frozen.
3. Incriminating documents and digital records were seized, including evidence of assistance from professionals (chartered accountants and legal professionals) in creating a complex network of companies.
4. Earlier provisional attachment of properties worth Rs. 193 crore and filing of prosecution complaint noted.
5. Additional funds of approx. Rs. 33 crore frozen during recent searches.

Legal Provisions Invoked:

1. Prevention of Money Laundering Act, 2002 – For attachment, investigation, and prosecution of proceeds of crime.
2. Sections related to money laundering, concealment of criminal assets, and conspiracy to defraud banks.

Status:

1. Investigation ongoing.
2. Further actions, including attachment of additional properties and prosecution, may follow.

Case Name: Directorate of Enforcement v. M/s Shree Ganesh Jewellery House (I) Ltd. & Promoters

Court / Authority: Directorate of Enforcement, Kolkata Zonal Office