SEBI probe finds Kerala jeweller running deposit scheme against RBI Act

Shaju Philip, The Indian Express, September 28, 2017

A SEBI probe has found irregularities in the functioning of Kerala-based Chemmanur International Jewellers, which was running a deposit scheme in the guise of advance payment for gold purchase in violation of the RBI Act.
The company’s chairman is Boby Chemmanur and football legend Diego Maradona is its brand ambassador. The alleged illegal operations of the jeweller have been under the scanner of various financial agencies in the recent years.
SEBI reported to the Kerala State Level Bankers Committee last month that Chemmanur, an unincorporated firm, was found to be running the deposit scheme in violation of Section 45 (S) of the RBI Act, 1934. The scheme was spread across several states and the scale of operations was reportedly to the tune of Rs 1,000 crore.
The report found that in 2012-13 to 2014-15, the group collected Rs 998.4 crore from people as advance payment for gold purchase. “However, the total gold sale of the firm during the corresponding period was only Rs 66.3 crore. The inventory is also negligible vis-à-vis the amount raised,’’ said the report.
SEBI has noticed that there was no actual sale of gold in most cases. There was largescale accumulation of funds from a very large number of persons in two bank accounts maintained by the firm. “Gold advances appear to be a major source of funds for the jewellers and the quantum of advance is no way comparable with the sales figures and the inventories in stock,” said the report.
Besides, part of the money was invested in or advanced to sister companies or firms, among these NBFC-Chemmanur Credit and Investment Ltd. There are allegations of deemed public issues by the companies belonging the group, which is being still probed by the SEBI.
Quoting the SEBI report on Chemmanur, former Chief Minister and chairman of administrative reforms committee V S Achuthanandan said the government should take strong action against the financial fraud of the firm.

Comments

Post a Comment

Popular posts from this blog

India Joins Russia in Voting Against West-Backed Move to Expand Powers of OPCW

The Wire: June 28, 2018 New Delhi: India voted against a UK-backed move that will allow the global chemical weapons watchdog to apportion blame for illegal attacks, criticising the decision to grant “unchecked powers” to the head of the group which could be used for “partisan” purposes. On Wednesday, more than two-thirds of the member states of the Organisation for the Prohibition of Chemical Weapons (OPCW) voted to authorise the international body to identify the perpetrators and sponsors of a chemical weapons attack. It also specifically called on the OPCW’s technical secretariat to begin work on identifying the perpetrators behind the use of chemical weapons in Syria. The draft decision, sponsored by 30 countries, was adopted at the fourth special session of the conference of the states parties to the Chemical Weapons Convention at the Hague, with 82 in favour and 24 negative votes. While Europe, the United States and their allies voted ‘yes’, there was strong oppo...
Read more

As financial insecurity rises in urban India, so does investment in insurance

Image
Scroll.in March 13, 2020 Urban Indians are becoming less confident about their financial security. Up to 58% of them fret over financial independence post retirement, which is a 4% increase from last year. An equal share of urban Indians worry about meeting their daily medical expenses and sustaining their current lifestyle once they stop working. The findings are part of a survey published by Delhi-based Max Life Insurance in association with London-based consultancy Kantar. The firms surveyed 7,014 respondents in 25 cities, including six metros, nine tier-1 cities, and 10 tier-2 cities, between December 2019 and January 2020. Source: Max Life Insurance via Quartz The trends Source: Max Life Insurance via Quartz Source: Max Life Insurance via Quartz Source: Max Life Insurance via Quartz A significant share of urban Indians also say their families will have no financial support in the event of the breadwinner’s death. In such a scenario, around 57% believe the family sav...
Read more

ED tracks Swiss Bank A/Cs of Agusta scamster

The Poineer February 10,2019 Rakesh K Singh The Enforcement Directorate (ED) has tracked a dozen Swiss bank accounts in the name of Rajiv Saxena, who is key accused in the Rs 3,600 crore AgustaWestland VVIP chopper scam. The ED has also found out accounts held by  his family members and associates where the kickbacks in the now scrapped deal were allegedly parked. Two bank accounts are in the name of Rajiv Saxena’s  associates Pankaj Jain and Sumita Jain who are also the authorised signatories. The  third is in the name of another associate Ajit Singh Bubber, but Rajiv and his family members are authorised signatories. The remaining nine accounts are largely owned and operated by Rajiv, his family members and associates. Rajiv Saxena was deported by the UAE authorities on January 30 and the ED formally arrested him the next day and a court later granted his remand to the agency. He is currently undergoing custodial interrogation by the ED. The agency had in 2017...
Read more