Ahmedabad Fraud Case: Kushal Diamonds and Leaders Convicted

The Special CBI Court in Ahmedabad concluded a 26‑year fraud case involving private jeweller Kushal Diamonds Ltd on September 8. Director Bakul Javeri and Director Majh S. Kapadia were each sentenced to five years of rigorous imprisonment and a personal fine of three million rupees. The company itself was fined thirty million rupees for its criminal conspiracy and fraudulent activities.

The scandal originated when NSIC officials allegedly colluded with Kushal Diamonds’ directors to siphon funds through a bill discounting facility and a raw material assistance scheme. Approximately 234.85 million rupees were transferred to the company, with a significant portion later offset against past dues and other payments.

The CBI’s charge sheet, submitted in January 2002, named eight accused, including four NSIC officers. The court, however, exonerated the NSIC officials, noting insufficient evidence. One external accused, Subhash Chhanana, died during the trial, leading the court to close his case.

The decision reinforces the legal system’s resolve to tackle corporate fraud and serves as a deterrent for future financial misconduct.