Another blow to Joyalukkas, ED seizes assets worth Rs 305 crore, announced withdrawal of IPO a few days ago

New Delhi. The Enforcement Directorate on Friday said it has attached assets worth over Rs 305 crore belonging to Joy Alukkas Varghese, owner of Kerala-based jewelery group Joyalukkas. This action has been taken in the case of Foreign Exchange Management Act for allegedly transferring huge cash to Dubai through hawala by the company.

Two days before the seizure, on February 22, the probe agency had carried out searches at several premises of the Thrissur-based group. “The attached properties include 33 immovable properties (worth Rs 81.54 crore), including land and residential building at Shobha City, Thrissur, three bank accounts (with deposits of Rs 91.22 lakh), Rs 5.58 crore,” the ED said in a statement. Three Fixed Deposits of Rs. and shares of Joylukkas India Private Limited (worth Rs. 217.81 crore) are included.

The total value of these properties attached under Section 37A of FEMA is Rs 305.84 crore.

IPO was withdrawn without giving any reason
The group had called off its initial public offering (IPO) of Rs 2,300 crore on February 17 without assigning any reason. The IPO proceeds were to be used for loan repayment, opening of eight new showrooms and general corporate purposes.

The ED said the case pertains to transfer of huge amount of cash from India to Dubai through hawala (illegal money transfer) and subsequent investment in Joyalukkas Jewelery LLC, Dubai, a company 100 per cent owned by Joy Alukkas Varghese .

The evidence found during the search—official documents and mail hawalas—“clearly proved” Joy Alukkas’ active involvement in the hawala transactions, the statement said. The ED alleged that Varghese was the “beneficial owner” of the money invested in Joylukkas Jewelery LLC, Dubai.

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Tags: enforcement directorate, Jewelery companies, Kerala