Enforcement Directorate seizes assets worth Rs 305 cr of Joyalukkas, raids 5 premises

The Enforcement Directorate (ED) on Friday (February 24) attached assets worth Rs 305.84 crore of the popular jewelry chain Joyalukkas. The ED's action comes days after it raided five premises of Joyalukkas. The ED has accused the Joyalukkas of violating provisions of the Foreign Exchange Management Act.
The case pertains to a huge amount of cash transferred from India to Dubai through hawala channels. The money was later invested in Joyalukkas Jewelery LLC in Dubai, a company 100% owned by Joyalukkas Varghese.
On Tuesday (February 21), the Joyalukkas called off their initial public offering (IPO) worth Rs 2,300 crore. The company had said that it needed more time to make substantial changes in its financial results.
The attached properties include 33 immovable properties valued at Rs 81.54 crore. Which includes land and a residential building at Shobha City in Thrissur. The ED has also attached three bank accounts worth Rs 91.22 lakh, three fixed deposits worth Rs 5.58 crore and shares of Joyalukkas worth Rs 217.81 crore.
Joyalukkas Chief Executive Officer Baby George told Reuters on Tuesday that the company planned to re-file its IPO documents as soon as possible, subject to market conditions.
Jewellery retailer Joyalukkas primarily focuses on South India. The company has withdrawn its IPO plan due to market volatility and extremely high inflation. Joyalukkas has showrooms in about 68 cities.