Oriental Bank of Comerce, A public sector bank in India has dectated and lodged a CBI FIR against Delhi based directors of diamond merchants export firm. The total amount of fraudlent transaction reported in FIR is 393 crores, which were raised in the form of Letter of Credit and Letter of Undertaking. The mode of fraud is as similar to recently held Nirav Modi scam in Punjab National Bank (PNB).
Name of Delhi’s based diamond exporter is Dwarka Das Seth International Pvt Ltd. Firm had earlier able to secured the buyer’s discount against the fake generated bills and overseas contracts, where firm are either obselete or non existence. 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.