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Investors in Mumbai jeweller’s gold schemes complain to EOW

The gold schemes are managed by suburban Mumbai-based Rasiklal Sankalchand Jewellers. Rating agency Brickwork Ratings revised the jewellers bank loan facilities of Rs 105 crore downward to BWR BB Plus from BWR triple B recently citing non-cooperat...

, ET Bureau|
Nov 01, 2019, 08.17 PM IST
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Sources told ET that EOW was verifying the facts based on the complaints and after statements were taken from the complainants.
MUMBAI: Investors in gold schemes run by suburban Mumbai-based Rasiklal Sankalchand Jewellers have complained of alleged loss of money and gold running into crores to the Economic Offences Wing (EOW) of Mumbai police after reports surfaced of the jeweller facing a financial crisis.

Sources told ET that EOW was verifying the facts based on the complaints and after statements were taken from the complainants. EOW chief Rajvardhan was not immediately available for comment.

Attempts to contact Nilesh Shah of Rasiklal Jewellers for comment were unsuccessful.

Rating agency Brickwork Ratings revised the jewellers bank loan facilities of Rs 105 crore downward to BWR BB Plus from BWR triple B recently citing non-cooperation of the issuer.

“The rating was due for a review in May, 2019. However due to non-availability of the required information, the rating was migrated to “Rating not reviewed” category on 19th August 2019. BWR took up with the issuer to provide required information over emails and through telephone calls. Despite the best efforts of BWR to get at least the minimum required information for a review, the entity has not provided the same. In the absence of adequate information from the issuer/Company, BWR is unable to assess the issuer’s/Company’s financial performance and its ability to service its debt and maintain a valid rating.”

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