ED seizes Rs 305.84 cr worth of assets of Joyallukas

Days after ED conducted searches at its premises, the central agency seized assets worth Rs 305.84 crore from popular jewellery chain Joyalukkas on Friday.

The Enforcement Directorate (ED) seized assets worth Rs 305.84 crore from popular jewellery chain Joyalukkas on Friday.

The ED attached the said assets in a FEMA case linked to the alleged transfer of "huge cash" to Dubai by the company through hawala channels, according to a report in PTI.

The attachment of assets comes two days after the federal probe agency had carried out searches at multiple premises of the Thrissur-headquartered group owned by Joy Alukkas Verghese.

"The attached assets include 33 immovable properties (valued at Rs 81.54 crore) consisting of land and residential building in Shobha City, Thrissur, three bank accounts (having deposits of Rs 91.22 lakh), three fixed deposits worth Rs 5.58 crore and shares of Joyalukkas India Pvt Ltd (valued at Rs 217.81 crore)," the ED said in a statement.

The retail jewellery chain had on February 17 withdrawn its Rs 2,300 crore initial public offering (IPO) without assigning any reason.

Proceed of the IPO were slated to be used for payment of debt, for financing the opening of eight new showrooms and for general corporate purposes.

The Enforcement Directorate case pertains to "huge amount of cash transferred to Dubai from India through hawala (illegal money transfer) channels and subsequently invested in Joyalukkas Jewellery LLC, Dubai which is 100 per cent owned company of Joy Alukkas Verghese," the ED said.

It said evidence gathered during the searches - official documents and mails - "clearly proved" active involvement of Joy Alukkas in hawala transactions.

It alleged Varghese was the "beneficial owner" of the funds invested in Joyalukkas Jewellery LLC, Dubai.

The company plans to refile its IPO documents "at the earliest, subject to market conditions," Reuters had quoted Chief Executive Baby George as saying on Tuesday, without elaborating further.

The jewellery retailer, which is quite popular in South India, has its showrooms in about 68 cities across India.