Another loan fraud: CBI files case against Karol Bagh based jeweler for allegedly swindling Rs.390 crore

New Delhi: Days after the PNB loan fraud, the biggest in India, a case has been filed by the CBI against another diamond merchant.

However, the Central Bureau of Investigation sat on a complaint from the Oriental Bank of Commerce for nearly six months regarding the fraud up to the tune of Rs.390 crore, reported the Times of India.

The CBI acted only after the Punjab National Bank fraud was unearthed.

The CBI filed the case on Thursday to probe Karol Bagh-based Dwarka Das Seth International, engaged in manufacturing/trading of diamond, gold and silver jewellery, which availed various credit facilities from OBC’s Greater Kailash-II branch since 2007 by getting Foreign Letters of Credit (FLCs), foreign documentary bill purchase and other instruments.

The company is run by Sabhya Seth and Reeta Seth — both residents of Punjabi Bagh — and Krishan Kumar Singh and Ravi Kumar Singh, residents of Sarai Kale Khan. The FIR names all of them.

The bank, after its own inquiry, claimed that Sabhya Seth and other directors along with their family members could not be traced at their residences for the last 10 months. It is suspected Sabhya Seth may have fled India.

The public sector bank had approached the CBI on August 16, 2017 with allegations against Dwarka Das Seth International but an FIR was registered only on Thursday. The bank claimed in its complaint that Dwarka Das Seth International enjoyed various credit facilities including foreign bill discounting under letters of credit (LCs). They first started availing this facility in 2007 and bills were regularly realized before further bills were discounted.

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