A show-cause notice under FEMA has been issued to Kolkata based Shree Ganesh Jewellery for illegal foreign exchange transactions to the tune of Rs.7220 crore. Shree Ganesh Jewellery is among the top-100 wilful bank loan defaulters as per the RBI list. The promoters are currently investigation by the CBI and also the Directorate of Revenue Intelligence.

The company and its promoters had allegedly defrauded 25 banks to the tune of Rs.2672 crore by availing working capital loans and discounting export bills from 20 nationalised banks and 5 private banks in Kolkata. The total foreign exchange siphoned out of the country is estimated to be to the tune of Rs.7220 crore.

Bank funds availed by the company were apparently routed in the garb of export to self-promoted foreign entities and proceeds were parked outside India. In most cases, Shree Ganesh Jewellery did not repatriate the sale proceeds via exports to the bank consortium in India from where the credit facilities were availed, a clear case of fraud.