Mumbai diamond merchant held in cheating case

MUMBAI: A 35-year-old diamond merchant from Malabar Hill, who under the pretext of exporting raw diamonds took diamonds worth Rs 7.33 crore and siphoned off the money, was arrested by the Mumbai police.
The Bandra Kurla Complex police on Tuesday arrested Karan Sanjay Shah under the IPC sections of cheating and criminal breach of trust. While Shah was produced before the local court and remanded to police custody, police are looking for his father Sanjay Shah.
The complainant, the manager of Bluedrop Diams DMC, having its corporate office in Dubai lodged a complaint that in 2015 accused Sanjay Shah and his son Karan were introduced to them through a common friend in a Dubai exhibition.Shahs said that they are partners of DRD Gems LLP having an office at Malabar Hill and are into diamond business for the past 30 years. In 2016 July, Karan Shah contacted the complainant company's office at Bharat Diamond Bourse at BKC and placed an order for raw diamonds and transferred 40,000 US dollars (equivalent to Rs 26 lakh).
Shahs told the complainant that they will be regularly buying diamonds for exports to various countries on 120 days credit.
"Initially Shahs placed various orders and in two years bought raw diamonds worth Rs 8.42 crore from Bluedrop Firm and paid only Rs 1.09 crore against the purchase and the balance amount was around Rs 7.33 crore and when Bluedrop diamonds officials demanded their balance amount, Shahs kept giving false assurance that as agreed they will make payment before 120 days credit but failed and it was during inquiries that the complainant learnt that Shahs have similarly duped few more diamond traders in the market", said an official.
The Bluedrop diamond firm then lodged an FIR with the BKC police with the invoices, delivery notes and hand written slips etc. Police said that the accused sold the diamonds in the local market and received the sale proceeds and diverted the same for personal accounts. Shah immediately approached the sessions court seeking anticipatory bail but later withdrew his plea fearing it would be rejected.