NEW DELHI: The recovery of black money deposited in banks during demonetisation has begun with ED restituting Rs 79 crore, seized from a jeweller, to SBI. Musaddilal Jewellers of Hyderabad deposited Rs 111 crore cash in various banks during demonetisation, claiming they were advance payments from about 6,000 clients for jewellery.
In Jan 2017, within weeks of the demonetisation deadline getting over, ED carried out searches at Musaddilal Jewellers and seized Rs 83 crore worth of jewellery, after a preliminary probe revealed these were purchased with black money of clients deposited by the jeweller in banks.
“ED has been investigating a money laundering case against Musaddilal Jewellers Pvt Ltd and others who had deposited more than Rs 111 crore in demonetised currency immediately after the demonetisation of high-value notes was declared,” the agency said on Tuesday. The accused had deposited the demonetised currency under the pretext of receipt of advance money from around 6,000 “fake customers” by creating fake invoices of less than Rs 2 lakh each, ED said.
The huge deposits of demonetised currency notes were made in various bank accounts and were later utilised towards purchase of bullion, the agency said, adding that the accused further created alleged proceeds of crime of Rs 28 crore, derived from sale of gold.
The probe further revealed that SBI had extended credit facilities to Musaddilal Jewellers, which remained unpaid. The loan accounts turned NPA in July 2019, with outstanding dues exceeding Rs 120 crore, as of March 2023. The total assets seized and attached include jewellery and properties worth over Rs 131 crore – jewellery being Rs 83 crore.
ED initiated the restitution process with SBI filing an application under Section 8(8) of the Prevention of Money Laundering Act (PMLA) before the special PMLA court in Nampally, Hyderabad, for release of moveable properties seized by the agency.
The special court allowed release of the seized assets to claimant SBI on Feb 3, after assurance by ED agreed to the restitution.
