Income tax officials raid Joyalukkas; attached assets worth Rs.305 cr

The Enforcement Directorate (ED) conducted searches in multiple offices of Kerala-based jewellery group Joyalukkas for alleged Foreign Exchange Management Act (FEMA) violations on February 22.

According to media reports, raids were carried out at the house of Joy Alukkas Verghese and at the head office of the jewellery group in Thrissur.

Joyalukkas, which is one of the biggest jewellery retailers, has outlets in 68 cities in the country.

The ED reportedly attached assets of the group worth more than ₹305 crore.

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

in a FEMA case linked to alleged transfer of "huge cash" to Dubai by the company through hawala channels.

The 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 raids come shortly after Joyalukkas India Ltd withdrew a ₹2,300 crore initial public offering (IPO).