Boby Chemmanur, a philanthropist in Kerala, allegedly running illegal gold purchase scheme

Boby Chemmanur's Jewellery running illegal deposit schemes

Boby Chemmanur, rather Chemmanur International Jewellers, in Kerala had collected about Rs.998.4 crores from the public under the head ‘advances towards gold purchase’. Thousands of crores of rupees were collected from lakhs of people in the name of jewellery in defiance of the Reserve Bank of India and the Banking Act. Cases were registered against Boby Chemmanur, Chairman of Chemmanur International Jewellers earlier, but the case has been drowned by both the left and the right governments in Kerala since 2014. Now, Advocate Niyas Bharathi, who is also a Congress leader, has lodged a complaint with the DGP against Boby Chemmanur and the ADGP is investigating the case. The DGP’s office said the report would be ready within 30 days. In 2017, SEBI informed that Chemmannur International Jewellers, an unincorporated entity, was found to be running a deposit scheme in the guise of advance payment for gold purchases, in violation of section 45s of the RBI Act, 1934. The scheme offered by the entity was spread across multiple states around 16 institutions and the scale of its operation was reportedly to the tune of Rs 1000 crore.

According to SEBI, analysis of the information/ documents indicated that the jeweller did issue a certificate akin to deposit certificate against the advance for gold, cancel the gold advance certificate upon receipt of cancellation or refund request, regular interest payment in the name profit share mostly in cash, guaranteed returns and no actual sale of gold in most cases. Part of the money was invested in sister companies or firms including NBFC-Chemmannur Credit and Investment Limited. There are also allegations of deemed public issues by companies belonging to the Chemmannur group, which is separately being examined by SEBI.

In 2017,Former Chief Minister VS Achuthanandan lashed out attack at jeweller businessman and philanthropist Boby Chemmannur with allegations of financial irregularities in the disguise of deposit schemes. His allegations were based on the same SEBI report. He also filed a complaint against Chemmanur Jewellers which has not been investigated. Despite his own government, no action was taken against this. Chief Secretary also had directed the Reserve bank and the Police Department to take further action. Despite having authentic information, no action is taking place and government intervene is necessary for the people to get justice.