Latest OBC Bank Scam
You see just finish talk about PNB after that OBC bank scam comes. After waiting on an issue from Oriental Bank of Commerce to get nearly six months, the CBI has actually filed a case against a Delhi-based jewellery outlet for claimed scams of Rs 390 crore, days soon after the Rs 11,300 crore scam was discovered at the Punaj National Bank (PNB).
The Central Bureau of Investigation on Friday recorded case against Delhi-based jeweler Dwarka Das Seth International for an alleged fraud worthy of Rs 389.95 crore towards Oriental Bank of Commerce so people called OBC bank scam.
This happens days after jewel billionaire Nirav Modi and his relative Gitanjali Group chief Mehul Choksi were simply booked for apparently defrauding Punjab National Bank of Rs 11,400 crore.
CBI Registered Case
The CBI registered the case on Thursday to check Karol Bagh-based Dwarka Das Seth International, enlisted in manufacturing/trading of diamond, gold and silver jewellery, which gettinged various credit homes from OBC’s Greater Kailash-II office since 2007 by receiving Foreign Letters of Credit (FLCs), foreign documentary bill buy and other instruments.
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The public sector bank had indeed contacted the CBI on August 16, 2017 with allegations against Dwarka Das Seth International but an FIR was registered only on Thursday. The bank declared in its problem that Dwarka Das Seth International enjoyed various credit facilities including foreign bill discounting under letters of credit (LCs). They initially started getting this facility in 2007 and bills were regularly realised before further bills were discounted. OBC bank scam online!
Six months after the public sector bank submitted a complaint with the CBI, the agency booked the firm, and Sabhya Seth, Reeta Seth, Krishna Kumar Singh, Ravi Singh – all directors of the company – and another firm named Dwarka Das Seth SEZ Incorporation in OBC bank scam.
The firm is run by Sabhya Seth and Reeta Seth– both of these residents of Punjabi Bagh– and Krishan Kumar Singh and Ravi Kumar Singh, residents of Sarai Kale Khan. The FIR names all of them.
The company has availed various credit facilities from OBC between 2007-12, which swelled to Rs 389 crore during the period.
Oriental Bank of Commerce Scam Approx 400 Crore
One more alleged fraudulent loan scam, including Rs 3.90 billion, has emerged in the jewellery sector.The Central Bureau of Investigation (CBI) has registered a case against a Delhi-based jeweler on a complaint from government-owned Oriental Bank of Commerce (OBC). The lender has alleged the firm, Dwarka Das Seth International, cheated the bank with the help of some of its officials, using Letters of Credit (LCs)– a banking instrument similar to those used by a group of companies belonging to Nirav Modi and Mehul Choksi to allegedly defraud Punjab National Bank of Rs 114 billion.
An LC is an obligation accepted by a bank to make a payment if specified criteria are met.Dwarka Das Seth International was taking loans from OBC since 2007, using LCs. “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,” OBC said in its complaint to the CBI, which registered a First Information Report on Thursday against the firm and unknown bank officials.The practice of raising loans through LCs continued till OBC noticed the other banks were poorly rated. The lender then stopped the credit facility.
The company carried out not pay back loans on time and demanded extension of the repayment window due to low business conditions.”Today, for the last 10 months, the customer is actually not answering and he and his family is not provided at the address in the bank records,” the Gurugram-headquartered bank has actually informed the CBI. During a forensic audit, the bank identified some of the foreign banks that had released letters of credit “had negative ratings, with no connection or presence in the country of the counterparties.
“”One of the LC-issuing banks was a non-existent bank on the basis of the correspondence address given in the borrower’s invoice,” found the forensic audit by Grant Thornton India, commissioned by OBC. The LC facility was used to pay off other trade creditors against purchase of gold and other precious stones, which were transferred to other countries “using fictitious trade transactions”. The money gained was used to pay off the notices of credit liabilities, the juristic auditor noted.Dwarka Das Seth International supposedly misrepresented facts to the banks, including information similar to creditors, customers and the company’s annual turnover. While the company reported annual turnover of Rs 1 billion, this actually was Rs 140-Rs 150 million bt the scam worth 400 crore in OBC bank.
The bank, after it is own query, claimed that Sabhya Seth and other directors throughout with their family members might not be traced at their residences for the last 10 months. It is presumed Sabhya Seth may have fled India.
As per records, the company has actually availed different credit facilities from OBC between 2007-12, which swelled to Rs 389.95 crore during the period. 400 crore OBC bank scam
It was located by the bank that the firm was using Letters of Credit (LoCs) to pay off other creditors against the purchase of gold and other precious stone and transfer gold and funds outside the country using fictitious transactions, the bank complaint, now part of the CBI FIR, alleged. People just about OBC bank scam worth 396 crore The company was also enlisting in business transactions with non existent entities, it added.
Final Words: OBC Bank Scam
So in this article we shared all the information regarding OBC bank scam. On the grievance of the bank, the firm has indeed booked the company, and Sabhya Seth, Reeta Seth, Krishna Kumar Singh, Ravi Singh – all directors of the firm – and another company named Dwarka Das Seth SEZ Incorporation.