ED Probes Shree Ganesh Jewellery House for ₹2,672 Cr Loan Fraud: 25-Bank Consortium Cheated [Read Press Release]
Shree Ganesh Jewellery House, a prominent name in the jewellery export industry is alleged to have misused loan facilities obtained from banks
Loan Fraud
Loan Fraud
The Enforcement Directorate (ED) has initiated a probe into the Kolkata-based Jewellery Shree Ganesh Jewellery House (I) Ltd. and its promoters for allegedly defrauding a consortium of 25 banks to the tune of ₹2,672 crore.
Search operations were conducted by the Kolkata Zonal Office of the Directorate on October 10, 2025 at thirteen locations across West Bengal, Telangana, and Gujarat after noting violations of the Prevention of Money Laundering Act (PMLA), 2002.
A First Information Report (FIR) was filed by the Bank Fraud & Financial Securities Unit of the Central Bureau of Investigation (CBI) at Kolkata, in which the jewellery company and its promoters were accused of cheating the consortium through fraudulent diversion of loan funds and concealment of assets.
Shree Ganesh Jewellery House, a prominent name in the jewellery export industry, is alleged to have misused massive credit facilities obtained from the banks and diverted portions of these funds to unrelated ventures.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
As per the findings of the ED, during the financial year 2010–11, the promoters of Shree Ganesh Jewellery House siphoned off approximately ₹160 crore from sanctioned loan funds and diverted the same towards funding several solar power projects. These projects were later deemed to be sold to former directors and close associates of the company and its group entities. ED has stated that such restructuring marked a deliberate attempt to conceal the Proceeds of Crime and prevent recovery of assets by the lending bank.
During the recent search operations, multiple bank accounts belonging to associated companies were traced and subsequently frozen by the ED. The Directorate also seized several incriminating documents, digital records and other material which indicated a systematic effort to disguise the movement of illicit funds.
The probe has further revealed that a few professionals, including a chartered accountant and a legal professional were active players in the siphoning operation, aiding in setting up a complex web of shell entities to obscure the financial trail.
Earlier in the same case, ED had provisionally attached properties valued at ₹193 crore, and also filed a Prosecution Complaint and along with the freezing of additional funds worth around ₹33 crore.
The Enforcement Directorate maintained that further investigation into the scheme is under progress.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
