Mumbai: ED Raids Multiple Locations In ₹142 Crore Bank Fraud Case Linked To Rialto Exim And Pushpak Bullion

The Directorate of Enforcement (ED), Mumbai, conducted search operations at a dozen locations in the city as part of an ongoing probe against M/s Rialto Exim Pvt Ltd, M/s Pushpak Bullion Pvt Ltd, Chandrakant Patel, and others in connection with a ₹142 crore bank fraud case.

In July 2022, the CBI registered a case against Rialto Exim and its directors Suchit Chandrakant Patel, Manisha Chandrakant Patel, Varsha Mahesh Patel, and Dinesh Jani accusing them of obtaining credit facilities from the Central Bank of India but failing to repay, causing a loss of ₹142.72 crore.

Rialto Exim, promoted by Chandrakant Patel, was a group company of Pushpak Bullion and was engaged in manufacturing, exporting, and trading gold, diamonds, semi-precious stones, and jewelry.

During the search operations, the ED seized immovable and movable assets linked to a money laundering case involving circular transactions between various Pushpak Group entities without any actual trade or business, allegedly for financial manipulation.

The probe revealed transactions worth over ₹500 crore between Rialto Exim Pvt Ltd and other Pushpak Group entities, along with various Dubai-based dummy firms linked to hawala operator Nandkishor Chaturvedi.

Investigators also uncovered the purchase of a mine in the U.S. by a Pushpak Group foreign entity and a cash deposit of ₹84 crore during the demonetization period in bullion trade entities controlled by Chandrakant Patel.