The agency has issued the circular against Sabhya Seth, Reeta Seth, Krishna Kumar Singh and Ravi Singh, all of whom are directors of the firm and have fled India after committing the fraud.
The CBI has issued a lookout circular against the owners of diamond jewellery exporter firm, Dwarka Das Seth International, in an alleged bank loan fraud case worth Rs 389.85 crore.
The agency has issued the circular against Sabhya Seth, Reeta Seth, Krishna Kumar Singh and Ravi Singh, all of whom are directors of the firm and have fled India after committing the fraud.
They fled India along with their family members in 2014, much before the Oriental Bank of Commerce approached the CBI with a complaint of fraud.
The bank, in their complaint, had stated that Dwarka Das International was declared a wilful defaulter in June 2014.
The agency registered a case against the company and its directors last Thursday after sitting on the complaint for six months.
The FIR was filed only when bank officials asked them to look into the matter again. The agency thereafter booked the company, all directors of the firm and another company named Dwarka Das Seth SEZ Incorporation. The agency stated that the company had availed various credit facilities from the bank between 2007 and 2012 and it was using Letters of Credit (LoC) to pay off other creditors against purchase of gold and other precious stones and transferring gold and funds outside the country via fictitious transactions.
“The borrowers were utilising this facility for discounting 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,” the bank said in its complaint.
The practice of raising loans through LCs continued till the bank noticed the other banks were poorly rated. The lender then stopped the credit facility. Also, the firm did not repay loans on time and demanded extension of the repayment window due to poor business conditions.
“Now, for the last 10 months, the customer is not responding and he and his family are not available at the address in the bank records,” the bank told the CBI.
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