On Saturday, the CBI had registered a case against another Delhi-based diamond exporter, Dwarka Das Seth International PVT Ltd, and its directors after receiving a complaint from Oriental Bank of Commerce.
Search was being conducted on Sunday at eight premises including the residence of directors, factory, corporate office and the registered offices of the company in Delhi, Hapur, and Noida.
The CBI registered a case against diamond jewellery exporter for a alleged Rs3.9 billion bank loan fraud.. The bank alleged that Ashirwad Chain Co-Proprietor Amit Singla took a loan of Rs 9.5 crore and, in connivance with valuers, showed inflated prices of the collateral deposited against the loan. The Bank stated in its complaint that Dwarka Das Seth International enjoyed various credit facilities including foreign bill discounting under letters of credit (LCs).
The company has availed credit facilities from Oriental Bank of Commerce between 2007-12, which swelled to Rs 389 crore during the period.The string of frauds came as an embarrassment for the BJP-led Central government, which had come to power on an anti-graft plank and had often listed corruption-free administration as one of its main achievements.
OBC had approached the the CBI on August 16 2017.
Simbhaoli Sugars is one of the country's largest sugar refinery companies.
According to the FIR, OBC sanctioned a loan of Rs 148.60 crore to the company in 2011.
The bank was allegedly cheated to the tune of Rs 97.85 crore, but the loss incurred by the bank is Rs 109.08 crore, the FIR read.
"The corporate loan, too, turned NPA on November 29, 2016, thus resulting in its first outstanding loan of Rs 97.85 crore (as alleged fraud) and the fresh corporate loan of Rs 109.08 crore (as fresh outstanding)", said Dayal. Majority relate to conspiracy and cheating, and some involve employees of the bank.
As it turned out, the accused "exporters" were using the credit facility for discounting of bills under the LoCs established by various financial institutions, including Dubai Bank Kenya, Soleil Chartered Bank, Trade Chartered Bank, TF Bank Kontrakt and Century Bank Corp purportedly on behalf of the importers located overseas.
According to the FIR filed by the CBI, there are two loans, both from the Oriental Bank of Commerce, under probe - a Rs 97.85 crore loan which was declared fraud in 2015, and a corporate loan of Rs 110 crore used to repay the previous loan.