On the night of demonetisation, jewelers companies deposited Rs 111 crore in just four hours in the bank

On November 8, 2016, when Prime Minister Narendra Modi was announcing the demonetisation at eight o’clock at night, some people started putting their black money white. Four hours after the demonetisation announcement, three Hyderabad-based jeweler companies immediately deposited 500 and 1,000 old notes worth Rs 111 crore into their bank accounts.
They quickly showed fake cash receipts and sales receipts to the banks, stating that 6,000 customers made huge purchases of gold and silver and jewelery in their showrooms from 8 pm to midnight on November 8, 2016. This disclosure was made on Tuesday by the Enforcement Directorate (ED), the central agency investigating the cases related to money laundering.In fact, the ED has seized assets worth Rs 130 crore from Jewelers Houses of Hyderabad and their promoters in this case of financial irregularities related to money laundering during demonetisation. According to the ED, the action was taken against Musuddilal Gems & Jewels Private Limited, Vaishnavi Bullion Private Limited and Musuddilal Jewelers Private Limited. The agency has filed two charge sheets in this case in September last year.
According to the ED, of the assets seized, 41 are in real estate and the rest in the form of investments in stocks, gold-silver and jewelery. Their total value is Rs 130.57 crore. The ED claims that the companies of Kusash Chand Gupta, promoters of Musuddilal James and his sons, met their chartered accountant (CA) Sanjay Sharda to create fake receipts to justify fake sources of income and large amounts deposited. Sharda advised them to keep the fake receipt amount below Rs 2 lakh, so that there is no need to keep the KYC or PAN records of the customers. CA was given a hefty amount in exchange for this advice.