CBI sits on OBC complaint for 6 months, acts after Nirav Modi scam

After sitting on a complaint from Oriental Bank of Commerce for nearly six months, the CBI has filed a case against a Delhi-based jewellery outlet for alleged fraud of Rs 390 crore, days after the Rs 11,300 crore scam was unearthed at PNB.

The CBI filed the case on Thursday to probe Karol Bagh-based Dwarka Das Seth International, engaged in manufacturing/trading of diamond, gold and silver jewellery, which availed various credit facilities from OBC’s Greater Kailash-II branch since 2007 by getting Foreign Letters of Credit (FLCs), foreign documentary bill purchase and other instruments.

The company is run by Sabhya Seth and Reeta Seth — both residents of Punjabi Bagh — and Krishan Kumar Singh and Ravi Kumar Singh, residents of Sarai Kale Khan. The FIR names all of them.


The bank, after its own inquiry, claimed that Sabhya Seth and other directors along with their family members could not be traced at their residences for the last 10 months. It is suspected Sabhya Seth may have fled India.

The public sector bank had approached the CBI on August 16, 2017 with allegations against Dwarka Das Seth International but an FIR was registered only on Thursday. The bank claimed in its complaint that Dwarka Das Seth International enjoyed various credit facilities including foreign bill discounting under letters of credit (LCs). They first started availing this facility in 2007 and bills were regularly realised before further bills were discounted.

Sabhya, OBC says, was utilising this facility under LCs established by foreign banks abroad. Some of these banks were poorly rated.

After cheating the bank, according to OBC, Sabhya formed a company in Dubai called Freya Trading Co. He even hired an Indian representative called Atul Kumar Garg. TOI spoke to Garg, who claimed he had not been in touch with Sabhya Seth for the past four years.

“I had done some business with him years ago but I don’t know where he is now. I have nothing to do with him,” Garg said.

Seth and other directors’ loacation is unknown for now. When TOI reached a Dubai number, allegedly belonging to Sabhya, one Alam picked up and said he didn’t know of anybody by that name.