CBI books Delhi jeweller over Rs. 390 crore Oriental Bank of Commerce loan scam

Other directors of two firms have also been named in the FIR.

According to The Hindu, the fraud was allegedly made in connivance with a section of bank officials. The main accused has been missing for over a year.

However, the move by police came six months after Oriental Bank of Commerce (OBC)  alleged a loan fraud of Rs 389.95 crore against the owner of Dwarka Das Seth International.

The fraud comes to light after the multi-crore Nirav Modi-Punjab National Bank scam that was reported earlier this month.

According to the Oriental Bank officials, jeweller and owner of the outlet Sabhya Seth, along with other directors of the company, have been untraceable for the past 10 months.

The accused had availed of credit facilities between 2007 and 2012. Those named in the FIR are Dwarka Das Seth International, its associate concern Dwarka Das Seth SEZ India Incorporation, proprietor Sabhya Seth and directors Reeta Seth, Krishna Kumar Singh, Ravi Kumar Singh and unknown bank officials.

Dwarka Das Seth International was taking loans from OBC since 2007, using LCs.

“The borrowers were utilising this facility for discounting of bills, under letters of credit established by Dubai Bank Kenya, Soleil Chartered Bank, Trade Chartered Bank, TF Bank Kontrakt Inc, Century Bank Corp LCC, etc,” OBC said in its complaint to the CBI.