After, PNB and BoB, Oriental Bank hit by Rs390-cr loan fraud

Leslie Hanson
February 24, 2018

The company had availed various credit facilities from OBC between 2007-12, which swelled to Rs 389 crore during the period.

The CBI filed the case on Thursday to probe Karol Bagh-based Dwarka Das Seth International, engaged in manufacturing/trading of diamond, gold and silver jewellery, which availed various credit facilities from OBC's Greater Kailash-II branch since 2007 by getting Foreign Letters of Credit (FLCs), foreign documentary bill purchase and other instruments.

The fraud comes to light after the multi-crore Nirav Modi-Punjab National Bank scam that was reported earlier this month. Seth and others believed to have fled the country and CBI has initiated efforts to locate the accused as they were not available at the address they provided to the bank.

Dwarka Das is run by Sabhya and Reeta Seth of Punjabi Bagh, and Krishan and Ravi Kumar Singh of Sarai Kale Khan.

The bank suspects that they also indulged in round-tripping of funds to increase their worth and get more credit facility. "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. Sabhya, OBC says, was utilising this facility under LCs established by foreign banks overseas.

The OBC found that the company was dealing with Dubai Bank Kenya, Soeil Chartered Bank, Trade Chartered Bank, TF Bank Kontrackt Inc and Century Bank Corp LLC, which were "poorly rated" and stopped discounting any bills.

In a bid to recover the dues, the bank had also approached the buyers, including Devi Jewells, Mannat FZE and PlatDiam International, but without any success. However, the company said the payments had already been received by the Dwarka Das employees and that it had never got any LoC issued for the goal.

Other reports by Iphone Fresh

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