MMTC Gold Scam of ₹549 Crore: ED Files Chargesheet, Hyderabad Court Takes Cognisance – Indian PSU
The Enforcement Directorate (ED) has filed a prosecution complaint in a ₹549 crore alleged fraud involving gold bullion transactions linked to MMTC Limited. A special court in Hyderabad has taken cognisance of the chargesheet, marking a significant step forward in the high-value financial probe.
Gold Bullion Transactions Under Scanner
The case pertains to alleged irregularities in gold procurement under MMTC’s Buyer’s Credit Scheme. According to the ED, private firms — including MBS Jewellers Pvt Ltd and Mussadilal Gems & Jewels (India) Pvt Ltd — obtained large quantities of gold bullion from MMTC.
Businessman Sukesh Gupta has been identified as the alleged mastermind behind the network.
The investigation stems from a prior FIR registered by the Central Bureau of Investigation (CBI).
Forex Cover, Margin Norms Violated: ED
As per the agency, the Buyer’s Credit Scheme mandates maintaining adequate foreign exchange (forex) cover and depositing additional margin money as security.
However, investigators allege that the accused entities failed to:
- Maintain the required forex cover
- Deposit the mandated additional 5% margin money
This, the ED claims, resulted in a loss of approximately ₹549.06 crore to MMTC.
Continued Supplies Despite Dues
The ED has further alleged that despite mounting outstanding dues, the firms continued to receive fresh consignments of gold bullion.
Investigators suspect that:
- Financial positions were misrepresented
- Existing liabilities were concealed
- Fresh supplies were obtained through misleading disclosures
Funds Diverted Through Complex Network
According to the chargesheet, proceeds from the sale of gold bullion and jewellery were allegedly diverted through a web of group companies, associates, and related entities.
The probe has uncovered:
- Multiple bank accounts and layered transactions
- Interconnected corporate structures
- Investment channels used to obscure fund trails
Forensic analysis of banking records, forex transactions, and digital financial data has been conducted to trace the ultimate beneficiaries.
Case Moves to Trial Stage
With the Hyderabad special court taking cognisance of the ED’s complaint, the matter will now proceed to the next stage of judicial scrutiny.
