The high court in London has issued a US$1 billion worldwide asset freezing order against Jatin Mehta, his wife Sonia, their sons Vishal and Suraj, along with a business associate Haytham Obidah.

The Mehta family, owners of Winsome Diamonds and Forever Precious Diamonds, and their associate allegedly owe around US$1 billion to 15 banks in India that issued standby letters of credit (L/Cs) to secure the repayment obligations of the Indian companies under precious metals facilities.

Jatin Mehta meanwhile has filed a claim in an Indian court for US$5 billion against diamond giant De Beers, private investigators Kroll and Standard Charted Bank, which has taken the lead in efforts of the allegedly defrauded banks to recover their losses.

Case history

The Mehtas have been on the run for several years and have been comfortably living in London after acquiring citizenship of St Kitts and Nevis, which has no extradition arrangement with India.

Winsome has been under investigation by the Indian authorities since January 2013 when 13 of its Dubai-based distributors failed to pay around US$750 million to the company.

All of the 13 Dubai-based clients that did not pay up were linked to Jordanian national, Obidah, who has not been traced.

Freezing order

The worldwide asset freezing order against the Mehtas was issued in May when the court also directed them to disclose their assets and surrender their passports.

Lawyers for the Mehta family are contesting the claims and seeking to reverse the freezing order.

Mehta's claim

Last month Jatin Mehta filed a claim in a court in Surat in the western Indian state of Gujarat for US$5 billion against De Beers, Kroll and Standard Chartered Bank. In the claim, Mehta alleges the three firms conspired over a number of years to destroy his business as well as his and his family's reputations.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.