ED Restores Rs 16 Cr To PNB In Gold Fraud Case

The Directorate of Enforcement (ED), Hyderabad Zonal Office, has completed the restitution of five attached immovable properties to Punjab National Bank (PNB) in a major gold fraud-linked money laundering case.

The properties, originally valued at around Rs 2.55 crore at the time the FIR was registered in October 2011, now have a market value of nearly Rs 16 crore.

The restitution was carried out under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002, following approval by the Special PMLA Court, Nampally.

The case pertains to M/s Ghanshyamdas Gems & Jewels and its managing partner Sanjay Agarwal, who was accused of fraudulently inducing banks to release 250 kg of gold using forged bank guarantees purportedly issued by PNB.

The ED investigation, initiated on the basis of a CBI FIR on October 19, 2011, revealed that after the fraud came to light, Agarwal and his brothers removed the mortgaged gold stock from their Abids showroom and sold it in the local market for cash. The proceeds were allegedly laundered through multiple firms floated in the names of family members, employees and benamis, along with unexplained cash deposits across several bank accounts.

Investigators also found that Agarwal had obtained a passport under a fake identity "Srikanth Gupta", travelled abroad multiple times, and opened bank accounts to lay illicit funds. Benami properties were also traced to one of his employees.

Earlier, the ED had arrested Agarwal on February 11, 2022, provisionally attached nine immovable properties, and filed a prosecution complaint before the Special PMLA Court on April 11, 2022.

The Special Court, by an order on January 19, 2026, allowed PNB's restitution plea, paving the way for the restoration of the attached assets to the victim bank.