Chennai jewellery firm accused of cheating individuals, SBI

Chennai  : Several individuals have lost their money investing in the savings scheme floated by city-based jeweller Nathella Sampath Jewelry Private Ltd while State Bank of India (SBI) has reported it had lost Rs 250 crore.

The jewellery company also did not honour commitments made to people who had offered their jewellery for sale and were promised they would be paid the money later.

"I had invested in the savings scheme floated by the jeweller. I had invested sizeable sum and yet to get back the money," an investor told a television channel on Saturday.

Another person said Nathella Sampath Jewelry promised to pay him the value of his jewellery after sometime but failed to do so.

The jewellery chain downed its shutters sometime back promising that it would settle the dues.

Meanwhile, the SBI on Friday in a filing in BSE said it had sanctioned an aggregate limit of Rs 250 crore in a consortium arrangement to Nathella Sampath Jewelry.

The bank said it has classified the loan as "fraud" on December 22, 2017 as the company had misrepresented its financial statements from 2010 and liquated its primary security.

The matter has been reported to CBI, the bank said.