Central Bureau of Investigation registers one more case against National Capital-based jeweler Dwarka Das Seth International for an alleged fraud worth Rs. 389.85+ crore towards Oriental Bank of Commerce. The Oriental Bank of Commerce suspects that they also indulged in round-tripping of funds to increase their worth and get more credit facility.

Further, After Nirav Modi and Mehul Choksi, the Central Bureau of Investigation has registered a case against a National Capital Delhi-based diamond jewellery exporter for an alleged bank loan fraud to the tune of Rs 389.85 plus crore towards Oriental Bank of Commerce. The agency has booked Dwarka Das Seth International Pvt Ltd for the alleged fraud..

Moreover, o6 months after the public sector bank filed a complaint with the CBI, the agency booked the company and another company named Dwarka Das Seth SEZ Incorporation. 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..

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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 this month. The Oriental Bank of Commerce 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 realised before further bills were discounted, the Times of India said in a report.

The process continued till the OBC said that, Sabhya was utilising this facility under LCs established by foreign banks abroad, of which some were poorly rated. According to OBC, Sabhya formed a company in Dubai called Freya Trading Co after cheating the bank. He even hired an Indian representative called Atul Kumar Garg. Also, these banks were poorly rated and that the exposure was getting on the higher side.

“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,”  the TOI report quoted Atul Kumar Garg as saying who also claimed that he had not been in touch with Sabhya Seth for the past four years. (With agency inputs). One such entity, Freya Trading Co., allegedly managed or controlled by Mr. Seth, was shown as a major customer of Dwarka Das International with its dues standing at about ₹105.44 crore.. The Oriental Bank of Commerce also wrote to Al-Salam Jewellery of Dubai for clearing ₹83.28 crore in bills. Although, the company says the payments was received by the Dwarka Das employees and that it had never got any LoC issued for the purpose.