The Central Bureau of Investigation (CBI) on Thursday conducted a search at two new places in Chennai, in connection with the bank scam undertaken by Kanishk Gold Pvt Ltd.
It further issued a lookout circular against the directors and promoters Bhoopesh Kumar Jain and Neeta Jain of the Kanishk Gold outlets at Bengaluru.
As per the information, Kanishk Gold Pvt Ltd was allegedly indulged in the business of manufacturing gold jewellery, which was marketed and sold to various retailers under a brand name.
Earlier on Wednesday, the CBI conducted searches at various properties of Kanishk Gold Pvt Ltd and accused persons for allegedly cheating 14 banks.
The company was getting credit facilities from banks led by the State Bank of India (SBI).
The nature of the limit was Working Capital facility sanctioned to the tune of approximately Rs. 747 crore.
Apart from this, the company had also availed certain Term Loan limits from SBI.
Falsification of records and the removal of the stocks secured to the lenders were also recorded.
It was further alleged that there were anomalies in the financial statements, such as in the quantity of stock carried forward to the next year, an anomaly in the sales register, diversion of funds and unusual transactions with the related parties.
The CBI is further investigating the matter.
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