After Punjab National Bank (PNB) scam, and many other banks, another public sector bank, Oriental bank of Commerce (OBC) has filed the cased against Delhi’s based diamond exported Dwarka Das Seth International Pvt Ltd for the alleged fraud. The mode of operandi is similar to PNB Nirav modi fraud i.e. issuance of letter of vredit/letter of undertaking against paying off the creditor for purchasing of Diamonds, Gold and other costly stones and related.
The best part of transaction is that Letter of Credit issued for Non-existence entities. 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. The firm did not repay loans on time and demanded extension of the repayment window due to poor business conditions.
After six month of filling the case by Bank against Diamond exporters, CBI has booked the company and their directors for cheating. The allegead company had borrowed the money fraudently between 20017-12 amounting 389 Crore.