In an MMTC fraud scheme, the Enforcement Directorate (ED), India’s AML Watchdog, seized jewellery worth Rs. 149 crore and Rs. 1.96 crores in cash. The Directorate of Enforcement (ED) searched MBS Jewellers Private Limited, Musaddilal Gems & Jewels India Private Limited, and its directors Sukesh & Anurag Gupta on October 17, 2022, at 5 sites in Hyderabad and Vijaywada.
In connection with the MMTC fraud scheme, ED recovered jewellery stocks worth Rs. 149.10 crores and cash worth Rs. 1.96 crores. After being apprehended by the ED on October 18, 2022, Sukesh Gupta appeared before the Special PMLA Court in Nampally, Hyderabad, where he was given a 14-day judicial custody term.
Who filed the complaint?
The basis for the ED’s investigation was the FIR that the CBI, ACB, Hyderabad filed against Mr Sukesh Gupta and his enterprises for defrauding M/s MMTC Limited (a Public Sector Enterprise) in the asset of gold bullion under the Buyer’s Credit Scheme. Mr Sukesh Gupta has been continuously removing gold from the company without leaving enough security deposits or having a currency cover, and his debts were routinely reported falsely to the MMTC Head Office. He had been actively coordinating his activities with a few personnel from the MMTC in Hyderabad. His businesses continued to take gold from the corporation for their advantage without making up for these losses, resulting in a loss of public revenue to the MMTC of Rs. 504.34 Crore. The CBI has filed a charge sheet against Sukesh Gupta and other individuals.
Why Enforcement take action against Sukesh Gupta?
Sukesh Gupta’s cooperation with several MMTC Hyderabad employees led to notable financial losses for the firm, which were uncovered during the ED investigation. Sukesh Gupta continued to take more and more gold while fabricating a misleading picture of his financial situation. Sukesh Gupta and MMTC also conducted an OTS (One-Time Settlement) in 2019. But since Sukesh Gupta did not follow the OTS guidelines, the MMTC claims that the OTS was a failure.
