ED chargesheets Rajmal Lakhichand promoters in ₹352cr bank fraud case

A Nagpur special court has taken cognizance of an Enforcement Directorate (ED) chargesheet in the ₹352.49 crore bank fraud case involving Jalgaon-based jewellery firms Rajmal Lakhichand Jewellers Pvt. Ltd, R L Gold Pvt. Ltd, and Manraj Jewelers Pvt. Ltd.

Mumbai: A Nagpur special court has taken cognizance of an Enforcement Directorate (ED) chargesheet in the ₹352.49 crore bank fraud case involving Jalgaon-based jewellery firms Rajmal Lakhichand Jewellers Pvt. Ltd, R L Gold Pvt. Ltd, and Manraj Jewelers Pvt. Ltd. The chargesheet also names their promoters and directors, including former Nationalist Congress Party (NCP) Rajya Sabha member Ishwarlal Jain and his son, Manish Jain.

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The ED’s probe, based on three Central Bureau of Investigation (CBI) cases from December 2022, reveals the firms and their directors are accused of criminal conspiracy, cheating, forgery, and criminal misconduct. They allegedly defaulted on loans from the State Bank of India (SBI), causing a loss of over ₹352.49 crore to the bank.

The investigation uncovered that the promoters submitted fake financial statements to obtain loans, engaged in round-tripping to inflate financials, and conducted bogus transactions. They are also accused of selling mortgaged assets without bank consent and destroying incriminating data.

In August last year, the ED conducted raids at 13 locations linked to the Rajmal Lakhichand group, seizing jewellery and bullion worth ₹24.36 crore, and cash worth ₹1.12 crore. The ED has provisionally attached assets valued at around ₹315.60 crore, including jewellery and windmills, linked to the accused.