The Central Bureau of Investigation (CBI) has filed a case against a diamond jewellery exporter based out of Delhi. The accused has allegedly committed a fraud of Rs 389.85 crore towards Oriental Bank of Commerce.
Dwarka Das Seth International Pvt Ltd has been booked by the CBI for the alleged fraud. The company’s four directors, Sabhya Seth, Reeta Seth, Krishna Kumar Singh, Ravi Singh, have been booked by the agency six months after Oriental Bank of Commerce filed a complaint with the CBI.
This comes after Nirav Modi and Mehul Choksi were named accused in a major 11,380 crore scam that shook the nation recently.
Reportedly, Dwarka Das Seth International Pvt Ltd availed various credit facilities from Oriental Bank of Commerce between 2007 and 2012 under Letters of Credit (LoCs). The amount had swollen to a whopping 389 crore in the mentioned period.
It has been learned that the company had issued LoCs to pay off other creditors against the purchase of gold and other precious stones and engaged in fictitious transactions to transfer gold and funds outside the country, the complaint by OBC alleged.
According to the bank, after cheating it, Sabya Seth had even set up a firm called Freya Trading Co in Duba and even hired an Indian representative called Atul Kumar Garg. “I had done some business with him years ago but I don’t know where he is now. I have nothing to do with him,” Garg told TOI.