The Central Bureau of Investigation on Friday registered case against Delhi-based jeweller Dwarka Das Seth International for an alleged fraud worth Rs 389.95 crore towards Oriental Bank of Commerce.
This comes days after diamond billionaire Nirav Modi and his relative Gitanjali Group chief Mehul Choksi were booked for allegedly defrauding Punjab National Bank of Rs 11,400 crore.
As per reports, the company has availed various credit facilities from OBC between 2007-12, which swelled to Rs 389.95 crore during the period.
It was found by the bank 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 company was also engaging in business transactions with non existent entities, it added.
On the complaint of the bank, the agency has booked the company, and Sabhya Seth, Reeta Seth, Krishna Kumar Singh, Ravi Singh - all directors of the firm - and another company named Dwarka Das Seth SEZ Incorporation.