The Enforcement Directorate (ED) on Wednesday, February 22, carried out searches in several offices of popular Kerala-based jewellery chain Joyalukkas, which has outlets in India and West Asia, a source in the agency said. This comes a day after the jewellery giant withdrew its Rs 2,300 crore IPO (initial public offering).
The central agency carried out the searches in several offices of the jewellery chain headquartered in Thrissur district of the state in connection with a money laundering probe, the source said. The searches were carried out over allegations of Foreign Exchange Management Act (FEMA) violations and large scale hawala funds transfer to Dubai.
Sources told The Hindu that five locations of the jewellery group were raided, including the mansion of the CMD (chief managing director) spread over 50,000 sq ft in Shoba city, Thrissur. According to reports, more than Rs 300 worth hawala transactions are being probed.
Sources said that documents and electronic and computer devices were seized, and the collected material and pieces of evidence will be examined before going ahead with the process for interrogation.
Joyalukkas, on Tuesday, withdrew its Rs 2,300 crore IPO, reported Reuters, citing a report on the market regulator Securities and Exchange Board of India's (SEBI) website. A company official told Reuters that it needed more time to bring into effect certain substantial changes in its financial results, before listing on the market. Joyalukkas chief executive Baby George was quoted as saying that the plan is to refile the IPO documents "at the earliest, subject to market conditions”.
In 2022, the company had filed its draft red-herring prospectus (DRHP) with the market regulator to raise funds through a public issue. According to the company’s draft prospectus filed in March 2022, the proceeds from the issue of the initial share sale were to be used to pay back some loans and to open new stores.
Joyalukkas is one of the largest jewellery retailers in the country, operating 85 showrooms across 68 cities.