Jewellery firm duped of ₹77cr; FIR filed

The economic offences wing (EOW) have booked former officials of the State Trading Corporation of India Limited (STC), senior executives of Export-Import (EXIM)

The economic offences wing (EOW) have booked former officials of the State Trading Corporation of India Limited (STC), senior executives of Export-Import (EXIM) Bank of India, and director of Ushma Jewellery and Packaging Exports Pvt Ltd for allegedly causing a wrongful loss of ₹77 crore to a New Marine Lines-based jewellery company, Masumi Overseas Private Ltd, by indulging in criminal acts with intention of cheating the complainant company.

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Officers from EOW’s unit-1 have recently registered a FIR ( a copy is with HT) based on a complaint by Santosh Kumar Doshi, 56, managing director of Masumi Overseas Private Ltd. Concerned officials of STC, director of Ushma Jewellery and senior officials of EXIM Bank have been booked under relevant sections of the Indian Penal Code (IPC).

The police said the complainant company has been conducting business with STC since 2005, exporting diamonds to foreign buyers since 2005. According to their contract, STC would play the role of exporter while Masumi Overseas Pvt Ltd (the complainant) would act as the shipper. Receiving or recovering payment from buyers was part of STC’s responsibility. Since the business was insured with a credit link insurance scheme, even if the foreign company did not pay the bill, the insurance company would pay the amount to the STC.

The complainant stated that in 2009 while exporting cut and polished diamonds to a foreign buyer through STC, the company had given all original documents of the deal to STC. As the buyer failed to pay STC, Masumi Overseas sent 12 invoices to STC for ₹151 crore, as per the provision of Sale of Document on Forfeiting Basis. Of that, STC has not paid for four invoice bills of ₹77 crore.

Masumi Overseas later learnt that to avoid paying Masumi Overseas, STC had roped in another company, Ushma Jewellery, which used false documents to show Ushma Jewellery did a part of the business and not Masumi. An EOW officer said, “The FIR was filed after preliminary inquiry revealed cognisable offence.” He added no arrest has been made yet.