Oriental Bank Loan Fraud: Delhi-Based Diamond Exporter Booked For Rs 389-Crore Scam
The CBI on Thursday filed a case to probe Karol Bagh-based Dwarka Das Seth International, engaged in manufacturing/trading of diamond, gold and silver jewellery.
New Delhi, February 24: A week after Nirav Modi-led Punjab National Bank (PNB) fraud shook the Indian banking system, another diamond jewellery exporter has been booked for loan fraud. The Central Bureau of Investigation (CBI) has registered a case against a Delhi-based exporter for an alleged bank loan fraud to the tune of Rs 389.85 crore towards Oriental Bank of Commerce. As per reports by PTI, the CBI has booked Dwarka Das Seth International Pvt Ltd for the alleged fraud.
The CBI on Thursday filed a case to probe Karol Bagh-based Dwarka Das Seth International, engaged in manufacturing/trading of diamond, gold and silver jewellery. The recent move comes six months after the Oriental Bank of Commerce bank filed a complaint with the CBI. The Oriental Bank of Commerce had approached the CBI on August 16, 2017 with allegations against the company. The Bank stated in its complaint that Dwarka Das Seth International enjoyed various credit facilities including foreign bill discounting under letters of credit (LCs).
Reports state that the company- Dwarka Das Seth International Pvt Ltd has availed various credit facilities from OBC between 2007-12, which swelled to Rs 389 crore during the period. The company first started availing this facility in 2007 and bills were regularly realised before further bills were discounted. The company is run by Sabhya Seth and Reeta Seth who are residents of Punjabi Bagh — and Krishan Kumar Singh and Ravi Kumar Singh who are residents of Sarai Kale Khan. The agency booked the company, the owners of the firm — and another company named Dwarka Das Seth SEZ Incorporation, a PTI report said.
According to a CBI FIR, the company was engaging in business transactions with non-existent entities. The bank found fraudulent transactions and noted that the company was using letters of credit (LoCs) to pay off other creditors against the purchase of gold and other precious stone and transfer gold and funds outside the country using fictitious transactions, the bank complaint, now part of the CBI FIR, alleged.
(The above story first appeared on LatestLY on Feb 24, 2018 02:39 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).