Mumbai: A special court recently allowed the CBI’s pleas for issuance of Letters of Rogatory (LRs) to the United Arab Emirates (UAE) and the United States (USA) to gather evidence in a bank fraud case against Pushpak Bullions Pvt Ltd. “For the purpose of proper investigation, to examine the witness, to collect documentary evidence…, it is necessary to consider the application,” special judge VP Desai said in two separate orders. The letters seek legal assistance in investigation of the case.The CBI alleged the company took Rs 140 crore loans from the Union Bank of India and Bank of India but showed inflated sales-purchase figure with the help of accommodating enteries, and siphoned the loan money. It was alleged that it caused wrongful loss of Rs 83.19 crore (Rs 70.48 crore to Union bank of India and Rs 12.71 crores to Bank of India) and its account turned into Non Performing Assets.On Nov 25, 2022, the CBI had registered the FIR against Pushpak Bullions on a complaint by Union Bank of India. Along with Pushpak Bullions, the CBI had booked the company’s chairman Chandrakant Patel, Amit Sampat, unknown officials of two banks and other unknown persons. In its complaint to the CBI, Union Bank said that in August 2015, the accounts of Pushpak Bullions started showing irregularity in servicing interest and instalments since the company neglected to regularise its accounts. The bank’s appointed auditor had found several irregularities in the company’s transactions.The CBI, in its plea related to UAE, submitted that the company claimed to have used gold metal received from banks as loan and manufactured gold jewellery and exported, to UAE based M/s Great Power Commodities DMCC, M/s Satyam Gems and Jewellers FZE, M/s Alliant Exim FZE, M/s Matrix Exim FZE, M/s Alton General Trading FZC and M/s Four Cut Trading FZE. For the UAE, the request aims to confirm that the six firms received items from Pushpak Bullions Pvt Ltd and to determine if these firms made payments to Pushpak Bullions Pvt Ltd. “In case payments were made, the statement of accounts of these six firms and vouchers showing the details of payments made…if payments have not been made, the reasons thereof and the records of these six firms…showing utilization of the items,” plea said.In the plea seeking LR to be issued to USA, the CBI submitted that gold jewellery and other items are shown to be supplied to different entities based in UAE. “Chandrakant Patel incorporated another company i M/s Pushpak Mining and Exploration LLC. Eighty one percent equity shares of M/s Pushpak Mining and Exploration LLC were held by M/s Pushpak Bullions Pvt. Ltd. This company acquired 100% in Pine Creek Mining Inc,” the CBI submitted. The prosecution further submitted that for the purpose of acquisition and development of Gold Basin Mine, the proceeds of the loan amount from Union Bank of India and Bank of India were routed to the accounts of M/s Pushpak Mining & Exploration LLC. For the USA, the request seeks to ascertain the amount the company invested in Pushpak Mining & Exploration LLC, determine the funds spent on the acquisition of Pine Creek Mining Inc and the development of the Gold Basin Mine. Recognizing the need for international assistance, the CBI requested the court to issue Letters of Request to both the UAE and the USA. This is the second case CBI registered against Patel and Pushpak Bullions. In the earlier case, the CBI had filed a closure report before the court stating that there was no substantive evidence to prosecute the accused. In July 2022, the court had accepted the closure report despite opposition from the Enforcement Directorate (ED) that was probing a related money laundering case against him in which it had attached properties of a company owned by former CM Uddhav Thackeray’s brother-in-law Shridhar Madhav Patankar.
