More trouble for the gem and jewelry industry in India: According to the State Bank of India, the jewelry retail chain Kanishk Gold (which also owns the Krizz jewelry brand), has committed a loan fraud of ₹824 crore ($126.4 million), accumulating to ₹1,000 crore ($153 million) after interest, according to Gem Konnect.
Bhupesh Kumar Jain and his wife Neeta, the directors of the company, have reportedly fled India and are now in Mauritius. The SBI has turned to the Central Bureau of Investigation (CBI) for help in the investigation.
According to the SBI, “Jain wrote a letter on to his bankers on the day of the inspection, admitting falsification of records and removal of stocks — which were supposed to be the banks’ secured collateral. Subsequent visits to the other showrooms revealed that they had also been locked”.
