Enforcement Directorate attaches Rs 172-crore property in bank default case

The enforcement directorate on Tuesday attached assets worth Rs 172 crore to the promoter of a diamond firm Winsome Diamonds and Jewellery Limited in connection with its money laundering probe in a bank default case involving Rs 6,800 crore.

Once the top diamond firm in 2013, the enforcement directorate and CBI are probing Winsome, promoted by Jatin Mehta, since 2013. The fraud came to light in January 2013 when 13 of its UAE-based distributors controlled by a Jordanian national, failed to pay Rs 4,760 crore to the company, according to its 2012-13 annual report.

The ED issued orders for the seizure of both movable and immovable properties of the firm, identified as Winsome Diamonds and Jewellery Limited, under the provisions of the Prevention of Money Laundering Act (PMLA).

Although forensic audits showed the firm had allegedly siphoned off the funds and fled from the country when ED has registered money laundering. On Tuesday ED attached property of Jatin Mehta from Mumbai, Surat, Ahemdabad, Goa, Banglore, Kochin, Kolkatta and Rajsthan.

Sources said, “Hathyam Obidullah is a one of the front man of Jatin Mehta who used to help him to siphon money and transferred it to Dubai.” After the fraud Jatin Mehta along with his two sons and wife fled from India to UAE.

ED officials said, “We have sent a letter of request to UAE requesting for Jatin’s investigation. Also we’ve sent a questionnaire to Dubai officials for Hathyam Obidullah to get some information about the fraudulence.”

According to data, of the total Rs 6,800 crore of debt and loans, Winsome owes Rs 4,680 crore to a consortium of lenders headed by Standard Chartered Bank. Its associate firm Forever Precious Diamonds and Jewellery owes another Rs 2,121.82 crore to a set of banks led by PNB.