India's Central Bureau of Investigation (CBI) has registered a fresh case against absconding diamond dealer Jatin Mehta, his company Winsome Diamonds and Jewellery and a Jordanian national, Hathyam Salman Ali Obaidah.

They allegedly cheated the Bank of India out of the equivalent of US$12 million after fraudulently obtaining a letter of credit (L/C) from the bank.

Bank involvement

The new investigation involves Mehta, Winsome and Obaidi as well as another company, Forever Diamonds.

Investigators say they also have a case against "unidentified officials of Bank of India," who are suspected of fraudulently extending Winsome's working capital limit to the equivalent of US$13.5 million in January 2013.

More investigations

Winsome had purchased gold from overseas banks, reportedly the Bank of Nova Scotia, Standard Bank and Standard Chartered Bank, on a loan basis and backed by a standby L/C issued by Bank of India.

Over recent years the CBI has filed six other federal investigation cases against Mehta, all pertaining to alleged bank frauds.

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