Hyderabad:The Central Bureau of Investigation (CBI) on Friday arrested top city jeweller and director of MBS group of companies Sukesh Gupta for allegedly cheating the Minerals and Metals Trading Corporation (MMTC), a Central government enterprise, to the tune of Rs 200 crore.
The CBI has alleged that Gupta, in connivance with top MMTC officials, caused a loss of Rs 200 crore to the corporation in gold trade. Officials have also arrested MMTC senior manager K. Ravi Prasad and more arrests are to come, sources said.
The two were remanded to judicial custody till January 8. The Special CBI Court also granted the CBI custody of the two for five days.
It has been alleged that the MBS (Musaddilal Bhagwat Swaroop) Jewellers Group had received 5,813 kg of gold in 82 deliveries in 2011 for which it had not paid the corporation in full.
The main allegation against Gupta is that he had taken undue favours in buying gold from the MMTC and caused wrongful loss to the corporation.
Next: MBS dues hit Rs 200 crore in 2011
MBS dues hit Rs 200 crore in 2011
Hyderabad: CBI officials alleged that senior MMTC manager K. Ravi Prasad had connived with director of MBS group’s Sukesh Gupta and released gold despite past MBS dues.
On January 3, 2013, an FIR was filed against Gupta and MBS Jewellers under Sections 120B (criminal conspiracy), 409 (criminal breach of trust), 420 (cheating), 471 (using forged document), 477A (falsification of accounts) and under the Prevention of Corruption Act.
The FIR was issued based on a complaint lodged by MMTC general manager T.S. Rao. The alleged financial irregularities are from April to December in 2011.
The shortfalls for nonpayment of 82 deliveries had arisen because while buying the gold, MBS provided financial security of lesser amounts than the actual amount, which had to be paid to the foreign supplier.
MMTC made the payments by buying US dollars on the date of payment, which was 90 days after the payment to the foreign supplier by the bank. Due to rupee depreciation, the amo-unt paid in rupees for buying dollars was more than the financial securities given by MBS.
To meet the difference, MMTC Hyderabad, instead of taking the difference from MBS, used funds given by other bullion customers who bought gold on cash-and-carry basis. As per procedure, MMTC had to remit the amount to foreign suppliers under the cash-and-carry scheme.
Instead, they fraudulently took buyers’ credit from banks and used the funds received to meet the shortfall for payment of transactions for MBS. In 2011, the shortfall accumulated to Rs 200 cr.
The laid down procedures of “bullion drill” were violated. MMTC officials continued to supply gold to the MBS Group against bank guarantees and fixed deposit receipts without covering the exposure. “The loan accounts were fudged to conceal the actual outstandings pertaining to MBS.
The officials suppressed the actual loss of over Rs 200 crore and instead falsely showed Rs 43.44 crore as exposure on account of MBS. Debit and credit notes were passed without narration for the huge amounts and they failed to collect the mandatory 5 per cent extra additional security for keeping the forex open,” alleged the complainant.
MBS Impex Private Limited and MBS Jewellers Limited at Basheerbagh of the MBS group are bullion customers of MMTC.
Apart from Gupta and Prasad, the case was also booked against MMTC’s former general manager V. Mohan Rao, DGM K. Anantha Krishna, senior manager K.V. Prakash, Deputy Manager A. Vijaya Bhaskar, senior manager Y. Rama Bheemappa, deputy manager A. Saravanan, deputy manager S. Prasanth and others.
MMTC is one of India’s largest bullion importers. It imports bullion from foreign countries and sells it to local customers through its offices. MBS has been one of the major bullion customers of MMTC since 2004.
