CBI arrests six of a coop bank in gold jewellery export scam

MUMBAI: CBI today arrested six persons including a chairman and a former director of a co-operative bank for their alleged involvement in a Rs 480 crore scam related to the export of gold jewellery.

According to the anti-corruption wing of CBI, the six accused colluded with unidentified officials of Metal Scrap Trading Corporations (MSTC) Ltd, a trading corporation of the Union Ministry of Steel, using fake and forged documents and exported gold jewellery worth Rs 600 crore to various buyers in UAE.

"Unknown officials of MSTC accepted fake documents and released 80 per cent of the export value to six exporter firms in 2008-09," a CBI official said.

The six arrested include Shirish Dharkar, chairman of Pen Co-operative Urban bank, his wife Gulraihna Oomer, Prem Kumar Sharma, former director of the bank and Jayesh Desai, owner of Joshi Bullion Gems and Jewellery.

All the six accused were today remanded to CBI custody till December 6.

"In 2008-09, the six firms had taken Rs 600 crore from MSTC as advance for generating liquidity in order to export gold to UAE. While Rs 120 crore was sent to MSTC, the remaining amount was not remitted within the stipulated 170 day period," CBI counsel Bharat Badami told the court.

The gold consignment was received by Desai at UAE, who was acting on the instructions of Dharkar and Sharma.

"Desai then sold the gold in the open markets of UAE and transferred to the accounts of Ushma Jewellery, Space Mercantile, Joshi Bullion Gems Jewellery and Leo Diamond," Badami said.

The exporters should have sold the gold and jewellery to the UAE companies shortlisted by MSTC. But they violated that norms and sold them in open market.

"While Rs 83 crore was transferred to Ushma, Rs 17 crore was sent to Space Mercantile and Rs 100 crore was transferred to Joshi Bullion Gems and Jewellery," CBI's remand plea states.

The funds obtained from MSTC were diverted through accounts maintained at Pen co-operative bank.