CBI Registers Case Against Ahmedabad-based Arihant Jewels For Fraud

The Central Bureau of Investigation (CBI) has registered an FIR against Gujarat’s Ahmedabad-based Arihant Jewels and its partners over allegations of fraud and misappropriation of public funds of Union Bank of India amounting to Rs 12.22 crore.

As per the reports, accused named in the FIR have been identified as Arihant Jewels, Ahmedabad and its partners-Anant Ashokbhai Shah and Maulikaben Anant Shah, Jigar Ashokbhai Hebra and unknown officials of Union Bank of India and others.

According to media reports, an internal inquiry report from October 2020 found that once the company began operating properly, all of its operations were abruptly terminated without alerting the finance bank.

The unit has failed to fulfil its payment or payback obligation to the lender and, without the bank's or lender's knowledge, has sold or removed any movable fixed assets or immovable property it had provided as collateral for the loan.

As per the CBI, “Therefore as there was no concrete evidence to ascertain the genuinity of transactions in account M/s Arihant Jewels and the other two connected accounts viz. M/s Bhagya Ornaments (Account with Union Bank of India, Raipur gate now with ARB, Ahmedabad) and individual agriculture loan account in the name of Ananat A Shah(e-AB, Ahmedabad Main Branch) it was decided to conduct a forensic audit as total exposure is around Rs 15.00 crore in all the three accounts of borrower Ananat A Shah and others.” The CBI further added that the forensic auditor has observed that the names of companies to which payments have been made/received have changed their names and are now dealing in new names.