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    Standard Chartered moves Economic Offences Wing against Winsome

    Synopsis

    Winsome group, according to banks, is India’s second-largest wilful defaulter after Vijay Mallya’s Kingfisher Airlines.

    MUMBAI: British bank Standard Chartered has filed a report with the Economic Offences Wing (EOW) of the Mumbai Police against Winsome group, which, according to banks, is India’s second-largest wilful defaulter after Vijay Mallya’s Kingfisher Airlines.

    Winsome Diamonds and Jewellery, a listed company, and group firm Forever owe Rs 6,800 crore to 15 banks in India. Standard Chartered Bank is the leader of the lenders’ consortium.

    Two years ago, SCB had unsuccessfully tried to register a report but this was rejected by the EOW. The present report was filed little over a week ago, two bankers told ET. “SCB’s fresh complaint to EOW against Winsome, over and above the existing complaints by the other banks to CBI and ED, is designed to accelerate the penal action on Winsome, which the EOW is best equipped with. Upon registration of a PE (preliminary enquiry), the EOW can immediately take cognisance of a fraud, which falls under their pecuniary jurisdiction and act on it,” said Zulfiquar Memon of MZM Legal.

    While Winsome has always held that it intends to repay the banks, most lenders in the consortium — except the State Bank of Mauritius, which is believed to be entering into a settlement with Winsome — are unconvinced.

    Speaking over telephone from Dubai, Winsome promoter Jatin Mehta said: “Banks have described as a wilful defaulter on the basis of the Kroll report which has no truth. Stanchart seems to have a different agenda. It is fuelling multiple investigations. Winsome has moved court in the UAE to recover money from customers and has won most cases.” Kroll is a leading firm in corporate investigations and risk consulting.

    Mehta, who has been away from India for the past five years, had long resigned from the Winsome board. He had taken citizenship of Saint Kitts and Navis and is yet to appear before the Enforcement Directorate, which is also investigating the matter. In June, ED had sent letters rogatory (LR) to obtain information on Winsome’s transactions from the UAE government. Winsome has always claimed that it could not repay banks due to huge derivative losses faced by its overseas clients, but ED is keen to trace the money trail. All the 13 Dubai clients, which did not pay up, were linked to one Haytham Ali Salman Abu Obidah, a Jordanian national based in Dubai.

    Banks in India had given standby letters of credit (similar to guarantees) in favour of global bullion banks which supplied gold to Winsome Group. The arrangement was if Winsome failed to pay the bullion banks, Indian banks would pay for the gold consignment.

    The Serious Fraud Investigation Office (SFIO) has also directed Winsome and all its directors to share financial record and bank account details (including those of their family members). SFIO pursues cases on which it receives direction from the Ministry of Corporate Affairs.


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