CBI issues lookout notice against diamond exporter Dwarka Das Seth for loan fraud

The Central Bureau of Investigation on Monday issued lookout circulars against all accused in the bank loan scam case involving jeweller Dwarka Das Seth, officials said. 

The CBI had registered a case against the Delhi-based diamond jewellery exporter for an alleged bank loan fraud to the tune of Rs 389.85 crore involving the Oriental Bank of Commerce.

The investigating agency registered a case against the company six months after the public sector bank filed a complaint with the CBI.

It also registered cases against the directors of the firm, Sabhya Seth, Reeta Seth, Krishna Kumar Singh, and Ravi Singh, and another company named the Dwarka Das Seth SEZ Incorporation.

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

The bank complaint, now part of the CBI FIR, alleged 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 company was also engaging in business transactions with non-existent entities, it said.