CBI grills 2 in OBC’s Rs 389.85 cr loan fraud case

CBI Headquarters

New Delhi,   The CBI on Thursday said that it questioned two persons in connection with its ongoing probe into a Rs 389.85 crore loan fraud in the Oriental Bank of Commerce (OBC).

A Central Bureau of Investigation (CBI) official said it grilled Punita Seth, wife of Sabhya Seth, who is one of the Directors of Karol Bagh-based Dwarka Das Seth International for several hours.

It also questioned the mother of Reeta Seth, another director of the firm.

According to agency officials, they were asked about the whereabouts of Sabhya Seth and Reeta Seth.

The CBI action comes in the wake of a case it registered after receiving a complaint from the OBC on August 16 last year regarding its bad loans.

The loans turned into non-performing assets (NPAs) in 2014, but the bank approached the agency last year, after the company had folded up and prime accused Sabhya Seth fled the country.

The CBI has started tracing India-based directors and partners of the company.

The OBC complaint has alleged that the company took loans by way of letters of credit and other such credit facilities for gold jewellery export or import between 2007 and 2012 but failed to pay back.

A bank probe found that the company indulged in round-tripping of funds through fictitious companies abroad and utilised funds by discounting bills based on letters of credit of foreign banks, which were either non-existent or had negative ratings.

On Monday, the CBI issued Look Out Circulars (LOCs) against Sabhya Seth, Reeta Seth, Krishna Kumar Singh, Ravi Singh — the directors of the diamond jewellery exporting firm.