Hasmukh Shah in CBI custody in Winsome bank fraud case

Mumbai: Hasmukh Shah, a close aide of Jatin Mehta, was remanded to CBI custody till Matrcjh 26 in the Rs 6,100 crore Winsome group bank fraud scam. The CBI alleged that he was the director and authorised signatory of the Forever Precious Jewellery and Diamonds Ltd (FPJDL), also known as Winsome Diamonds Group and he has been arrested because he has played an important role in getting loans. The group has allegedly defaulted on loans worth thousands of crores of rupees.

The CBI counsel, A. Limosin argued before the court that a case was registered on June 24, 2016 after receiving a written complaint by the deputy general manager, circle office of Canara Bank. However, Shah is the first arrest in this case.

According to the CBI, the FPJDL, which was engaged in production facilities for cutting and polishing of diamonds and manufacture of jewellery, borrowed money from the consortium of various banks led by Punjab National Bank (PNB). Canara Bank was one of the members of the consortium wrote to CBI complaining about default of huge amount of loan by FPJDL.

The prosecution case is that in March 2012, the Management Committee of Canara Bank sanctioned more than Rs 160 crore of fund-based and non-fund based limit, including 20% stand by limit or the regular limits. Out of the sanctioned non-fun based limit, the company opened various Stand by Letters of Credit (SBLCs) in favour of various bullion banks. CBI also said that the company purchased gold from these bullion banks abroad - The Bank of Nova Scotia, Standard Bank Ltd. and Starndard Chartered Bank - against these SBLCs. 

It is further alleged that later, this gold was processed and sent to 13 buyers in UAE. The company failed to make payment for the gold on the strength of SBLCs.