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CBI probing cases of Rs 1530 crore fraud against two firms

According to the CBI, Standby Letters of Credit (SBLC) were opened by the banks for the import of gold by Winsome Diamond Jewellery Ltd and Forever Precious Jewelleries Private Ltd companies from foreign banks.

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The Central Bureau of Investigation (CBI) on Wednesday registered six cases against two Mumbai based private firms dealing with jewellery and few others for allegedly causing losses approximately worth Rs 1530 crore to various banks. The agency is also probing the role of bank officials in this alleged fraud.

According to the CBI, Standby Letters of Credit (SBLC) were opened by the banks for the import of gold by Winsome Diamond Jewellery Ltd and Forever Precious Jewelleries Private Ltd companies from foreign banks. Gold was imported to India, then was re-exported to 13 UAE based buyers.

When the companies did not honour the SBLCs, Indian banks were forced to make payments to the foreign banks. An alleged loss of approximately Rs 1530 crore was caused to banks in these cases. One Jatin Mehta is Chief Promotor of both these companies.

“Central Bank of India incurred Rs 699.54 crore (approx) loss in one case and Rs 255.24 crore (approx) loss in other case, IDBI Bank Ltd incurred Rs 133.12 crore (approx) loss in one case and Rs 55.68 crore (approx) loss in other case, while Vijaya Bank incurred Rs 233.15 crore (approx) loss in one case and Rs 153.71 crore (approx) loss in other case,” said a CBI official.

After the banks realised that they have been duped, a case of cheating and criminal conspiracy was lodged against the companies, Mehta and others by Central Bank of India, IDBI Bank Ltd and Vijaya Bank respectively. “Even role of bank officials will be probed,” the official said.

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