Kanishk Gold fraud case: ED arrests Bhoopesh Kumar Jain

By

Isabelle Crossley

Published
May 28, 2018

As part of the ongoing Rs 824 crore ($123.9 million) bank fraud case involving the luxury jewellery brand Kanishk Gold¸ the business’ Managing Director Bhoopesh Kumar Jain has been arrested by the Enforcement Directorate (ED) in Chennai.

The Chennai based Kanishk Gold Private Limited’s Managing Director Bhoopesh Kumar Jain has been arrested by the ED under the Prevention of Money Laundering Act (PMLA). The Central Bureau of Investigation opened a case against the jewellery business on March 21 and investigations have been ongoing since then. The investigation has listed a Rs 824 crore bank fraud carried out by the business against a consortium of 14 banks led by the State Bank of India (SBI).

The ED said in a statement: “Jain may certainly try to tamper with evidence and records to manipulate the facts in favour of his case… He has neither cooperated with the investigation nor has he revealed any true or factual information so far.” The statement also said that Jain is currently in prison.

The ED has identified Rs 143.58 crore worth of properties belonging to Jain as part of the case and has identified the assets as proceeds of a crime. The ED also took steps to freeze the business’ plants and machinery in its Kancheepuram district unit in April as part of the case. The business was manufacturing gold jewellery under the brand name “Krizz”.