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CBI Makes Arrest in Winsome Bank Fraud

Mar 13, 2018 4:39 AM   By Rapaport News
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RAPAPORT... India’s Central Bureau of Investigation (CBI) has arrested Hasmukh Shah in its ongoing investigation into Winsome Diamonds, Reuters reported.

Shah is a former director and authorized signatory of Forever Precious Jewellery and Diamonds, a subsidiary of the Winsome Diamonds group, the report said Monday. Both companies have been accused of defaulting on more than $939 million (INR 61 billion) in credit provided to them by a number of banks, including Punjab National Bank, which jewelry tycoon Nirav Modi is also accused of defrauding.

Shah is considered a close aide of former Winsome company director Jatin Mehta, who fled India in 2013 amid investigations. Mehta is now said to reside in St. Kitts and Nevis, a Caribbean island nation that does not have an extradition treaty with India.

In 2017, the CBI registered multiple cases against Winsome. Last month, the National Company Law Tribunal ordered bankruptcy-resolution proceedings against both Winsome and Forever Precious.

The law-enforcement agency said Shah would appear before a Mumbai court Tuesday.

The company could not be reached for comment.

Image: avagyanlevon/Shutterstock
Tags: Bank Fraud, CBI, Central Bureau of Investigation, Forever Precious Jewellery and Diamonds, Hasmukh Shah, India, Jatin Mehta, National Company Law Tribunal, Nirav Modi, Punjab National Bank, Rapaport News, Reuters, Saint Kitts and Nevis, winsome, winsome diamonds
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