P&S Jewellery faces police investigation for allegedly cheating banks

By

Isabelle Crossley

Published
Dec 13, 2019

Mumbai-based jewellery and diamond business P&S Jewellery faces a police investigation for allegedly wilfully defaulting on loans and cheating a consortium of lenders including Union Bank of India.

The Central Bureau of Investigation named three directors of the business, Paresh Chabildas Shah, Sahil Paresh Shah, and Viraj Chetan Shah in its investigation into the alleged cheating case, ET Bureau reported. The CBI also searched 13 places connected to the case on December 12 and recovered a number of documents as evidence.

P&S Jewellery allegedly caused a Rs 568 crore ($85.3 million) loss to a group of eight banks led by Union Bank of India. Other banks in the consortium included State Bank of India, Central Bank of India, Andhra Bank, and Vijaya Bank among others. The business was referred to a bankruptcy court in 2018  when a number of the banks declared the promoter a wilful defaulter. 

The banks have incurred a loss of around Rs 568.52 crore on a loan of around Rs 578.5 crore, according to the CBI. The jewellery business has been accused of forging documents in order to avail credit facilities, the CBI said in a press release on Thursday. The investigation is ongoing.