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Gold jewelry export scam - EY - India

The Fraud Watch: January 2011

Gold jewelry export scam

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CBI arrested six persons for cheating the bank and state-run Metals Scrap Trading Corporation of INR4.8 billion in the gold jewelry export scam.

CBI arrested six persons, including Co-Operative Bank’s Chairman Shishir Dharkar, his wife Gul Raihina, the bank’s former director Prem Kumar Sharma and Jayesh Desai, owner of Joshi Bullion Gems and Jewellery for cheating the bank and state-run Metals Scrap Trading Corporation (MSTC), a trading corporation under the Union Ministry of Steel, of INR4.8 billion in the gold jewelry export scam.

According to the CBI, MSTC accepted the forged documents presented by the six accused people to export gold jewelry worth INR6 billion to the UAE, and gave 80% of the export value to the six exporter companies.

While these companies gave INR1.2 billion to MSTC, the remaining amount was not remitted within the stipulated 170-day period.



Source: “Bank officials, businessmen arrested for fraud,” Indo-Asian News Service, 26 November 2010, via Dow Jones Factiva © 2010 HT Media Limited.
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