Diamond trader siphoned off with Rs 390 crore from Oriental Bank
After Nirav Modi and Vikram Rathore scam, another large scale loan scam to the tune of Rs 390 crore by Delhi-based diamond jewellery trader Dwarka Das Seth International Pvt Ltd from Oriental Bank of Commerce (OBC) has come forward.
After Rs 11,400 crore PNB scam and Rotomac loan default of Rs 459 crore, this siphoned off Rs 390 crore loan is the third biggest scam which came to light within a span of few days.
The CBI has registered a case against a Delhi-based jewellery trader and its directors for alleged loan fraud of Rs 390 crore on the basis of complaint filled by Oriental Bank of Commerce (OBC).
Even though CBI received a complaint from the Oriental Bank of Commerce for Rs 390 crore scam involving Delhi-based diamond trader, the matter was put on back borner but later swung into action nearly after 6 months to file a case against the accused and his associates as they were not found at their respective addresses.
The CBI booked diamond jewellery trader Dwarka Das Seth International Pvt Ltd, Sabhya Seth, Reeta Seth, Krishna Kumar Singh, Ravi Kumar Singh - all directors of the firm for the alleged fraud.
Dwarka Das Seth International Pvt Ltd, a Delhi-based company deals with manufacturing and trading of diamond, gold and silver jewellery. 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 accused Dwarka Das Seth International Pvt Ltd was allegedly availing loans from Oriental Bank of Commerce with the help of corrupt officials between 2007 and 2012 that gradually swelled to Rs 390 crore.
The company was using Letters of Credit (LOC) 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.
Oriental Bank of Commerce declared the loan accounts as NPA (Non Performing Assets) in 2014 suspecting fraud for irregularities in foreign exchange transactions.
The whereabouts of Sabhya Seth, the prime accused and its other directors are not known for now. It is suspected Sabhya Seth might have left India.
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