One more held in Musaddilal fraud

​Hyderabad: The Central Crime Station (CCS) police on Friday arrested Pawan Agarwal, proprietor of Sri Balaji Gold, located at Abids in connection with the alleged fraud committed by Musaddilal jewellers.

CCS Deputy Commissioner of Police Avinash Mohanty said Pawan Agarwal and the management of Musaddilal Jewellers and others conspired together to legitimise the demonetised currency notes. Accordingly, Pawan Agarwal collected Rs 37 crore from various people and handed over the same to Musaddilal Jewellers of Nitin Gupta.

Later, the money was diverted to the two accounts of Sri Balaji Gold Bullion belonging to Pawan and subsequently the same was diverted to other accounts of bullion dealers and purchased the bullion gold, the DCP said.

The accused had hatched a conspiracy and generated fake and fictitious advance payment receipts for an amount of Rs 110 crore purported to be acquired from about 5890 customers.

All the receipts were shown to have been generated between 9 pm and 12 midnight on November 8 last year, the day when demonetisation of high-currency was announced by the Union government, the DCP said.

The Income Tax officials found flaws in the transactions and lodged a complaint with the city police. The CCS police took up investigation and arrested the managing director of Musaddilal Jewellers, Kailash Chand Gupta, his relative Narendra Kumar and Neel Sundar earlier.