Hyderabad: Jewellery store director arrested for selling gold worth Rs 100 crore to fictitious customers

The store used fake names and fake addresses, like Delhi's South Extension and Greater Kailash, on the bills

Officers of the Central Crime Station (CCS) Hyderabad today arrested director of Musaddilal Jewellers Private Limited Kailash Chand Gupta for allegedly selling gold worth Rs 100 crore to fictitious customers.

Here is how investigating agencies tracked the case:

1. According to sources, the jeweller used fake names and fake addresses on the bills. A few bills, said sources, had Delhi's Kailash Colony, Greater Kailash and South Extension as customer addresses.
2. The jewellery store had claimed that on the night of November 8 customers had bought gold worth Rs 100 crore, all in demonetised currency.
3. A case was registered against the three directors of the famous jewellery store in the posh Banjara Hills locality. The directors are Kailash Chand Gupta, Nitin Gupta and Nikhil Gupta. While Kailash Chand has been arrested, the other two are absconding.
4. The arrest was made after the Income Tax department approached CCS and lodged a complaint alleging fraud by the jeweller.
5. Earlier, the Income Tax department had conducted raids on the jewellery store and recovered bills showing irregularities. All the bills showed purchases of under Rs 2 lakh. PAN number is not mandatory for jewellery purchase of less than Rs 2 lakh.
6. The CCTV footage recovered from the jewellery store showed that the shutters were downed at 8 pm on November 8. The bank account where all the money was transferred had been frozen.