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

On Thursday, the CBI filed the case to probe Karol Bagh-based Dwarka Das Seth International, engaged in manufacturing/trading of diamond, gold and silver jewellery. The agency 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.

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The company has availed various credit facilities from OBC between 2007-12, which swelled to Rs 389 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 said.

After inquiry, Oriental Bank of Commerce claimed that Sabhya Seth and other directors along with their family members could not be traced at their residences for the last 10 months. It is suspected Sabhya Seth may have fled India.

The bank 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.