Delhi diamond exporter frauds Oriental Bank of Commerce of Rs 389 crore, CBI registers case

Following an internal enquiry, OBC had approached the CBI in August 2017 claiming one of the accused, Sabhya, may have fled the country. The OBC complaint has alleged that Dwarka Das Seth International took loans by way of letters of credit and other such credit facilities for gold jewellery export/import between 2007 and 2012 but failed to pay back and the loans turned NPA in 2014.

A probe by the bank found that the company had indulged in round-tripping of funds through fictitious companies abroad and had utilised funds through discounting bills issued under letters of credit of foreign banks which were either non-existent or had negative ratings. “We feel that Shri Sabhya Seth of M/S Dwarka Das Seth International Pvt Ltd had orchestrated an elaborate plan to dupe the bank,” OBC said in its complaint.

The banking sector and auditing bodies are under extreme strain following the detection of loan frauds worth Rs 11,400 crore by Punjab National Bank. Four days after PNB complained of being allegedly defrauded by Nirav Modi, Bank of Baroda (BoB), which had granted loans of Rs 3,695 crore to Rotomac with six other banks and was negotiating with the company for its return, had lodged a complaint with CBI as well.

(With inputs from PTI)

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