Two directors held in Rasiklal Jewellers fraud

Rasiklal Jewellers director Jayesh Shah (Picture courtesy/Rajesh Gupta)

Two directors of Rasiklal Sakalchand Jewellers were arrested on Monday by the Economic Offence Wing (EOW) probing the alleged fraud in the company. The brothers were held after day-long inquiry and produced in court on Tuesday. So far, 52 people have registered their complaints with the EOW claiming a total of around R9 crore. However, the estimated investment with the jewellers is about Rs 300 crore.

On the night of October 30, as investors in jewellery schemes thronged Rasiklal Jewellers on M G Road demanding their money. Hundreds of investors have deposited around Rs 300 crore in gold programmes of the jeweller. Most of them have made payments in cash used by the jeweller for the alleged fraud.

A Rasiklal Sankalchand Jewellers outlet

Director Jayesh Shah, who allegedly failed to return the invested amount, was given 24 hours to respond. But on November 2, Ghatkopar resident Nikunj Patel, who had invested Rs 60.98 lakh in various schemes of the jewellers, registered a complaint in Pant Nagar Police station.

"A detailed inquiry was carried out later which resulted in the arrest of both," said an EOW official. "They will be produced in court on Tuesday," he added. DCP (EOW) Shrikant Paropkari confirmed the development.

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