VS alleged that the company had committed irregularities to the tune of Rs 1,000 crore in the guise of gold-buying schemes.

Chemmanur Jewellers running illegal deposit schemes shut it down says VS Achuthanandan
news Controversy Thursday, September 28, 2017 - 08:02

VS Achuthanandan, Chairperson of the Kerala Administrative Reforms Commission, has hit out at Chemmannur International Jewellers with allegations of massive financial irregularities to the tune of Rs 1,000 crore.

Alleging that the company run by Boby Devassikutty (popularly known as Boby Chemmannur) has been committing irregularities in its gold buying schemes and deceiving people, the veteran CPI (M) leader has urged the government to take action against the company at the earliest.

“I had earlier given a complaint regarding the scam to the previous UDF government, but they did not take action on it,” VS told mediapersons on Wednesday.

VS said that his statements were based on a June report by the Securities and Exchange Board of India (SEBI), accessed by a state government committee, which stated that the Chemmanur group was illegally running deposit schemes in the guise of gold-buying schemes. The SEBI report has not yet been made public.

“SEBI informed the committee that Chemmannur International Jewellers, an unincorporated entity, was found to be running a deposit scheme in the guise of advance payment for gold purchases, in violation of section 45s of the RBI Act, 1934. The scheme offered by the entity was spread across multiple states and the scale of its operation was reportedly to the tune of Rs 1000 crore. The ADGP Crimes advised RBI to examine the matter and officially forward the case to the police department for necessary action,” says a release from VS’s office.

VS urged the government to close down the firm and compensate people for the losses caused by these illegal schemes.

The veteran leader had also made allegations of financial fraud against Chemmanur Jewellers in 2015. His allegations had then taken a serious turn following the death of a man named Ismail, who had immolated himself in a Chemmanur outlet in Thrissur, reportedly due to pressure to pay up installments in a gold scheme.

The mainstream media had also been the subject of much popular anger then, as it was felt that the entire issue, including Ismail’s death, had not been covered because of Chemmanur’s status as a major advertiser. 


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