Shree Ganesh Jewellery promoter Nilesh Parekh arrested

By

Isabelle Crossley

Published
Jun 19, 2018

The Directorate of Revenue Intelligence has announced that the promoter for Shree Ganesh Jewellery House Limited, Nilesh Parekh, has been arrested for fraud.

On June 15, the Directorate of Revenue Intelligence made a statement saying that Parekh has been arrested and is accused of fraud including the diversion of 1,700 kg of primary gold. An official of the Directorate of Revenue Intelligence told Ians: "We have arrested Kolkata-based Shree Ganesh Jewellery House's promoter on Thursday and he was produced before court on Friday. He has been remanded eight days of judicial custody."

Parekh has previously been arrested by the Central Bureau of Investigation last year in connection to a fraud concerning a consortium of banks led by the State Bank of India. Parekh was accused of failing to pay a loan totalling Rs 2,672 crore ($401.6 million).

The Directorate of Revenue Intelligence official also stated: "Our investigation suggested that he was found to be actively involved in the fraud of diversion of primary gold of over 1700 kg among other violations like non-realisation of remittance on account of export of gems & jewelleries to the tune of Rs 7,500 crore."

The business is believed to have used shell companies in Singapore, Dubai, and Hong Kong and is also believed to have failed to realise export proceeds worth Rs 7,450 crore. The Central Bureau of Investigation is currently carrying out investigations based on complains about outstanding bank loads and the Enforcement Directorate is investigating the case under the Prevention of Money Laundering Act and the Foreign Exchange Management Act.