The Economic Offences Wing (EOW) of the Delhi Police has arrested a Singaporean national, Mukesh Gupta, for orchestrating an international trade fraud involving forged shipping documents and fraudulent letters of credit (L/Cs), resulting in a loss of approximately 10 crore rupees (US$1.18 million) to an Indian company.

The case highlights the vulnerabilities in international trade finance mechanisms, particularly the reliance on documentary evidence for the release of funds under L/Cs. It underscores the need for stringent verification processes and due diligence by banks and trading partners to prevent such fraudulent activities.

Fraud background

Gupta, an Overseas Citizen of India and managing director of Amrose Singapore, entered into an agreement with Chaudhary Timber Industries (CTI) to supply timber from New Zealand.

To facilitate payment, CTI opened L/Cs through Indian Bank's Singapore branch. Gupta submitted forged bills of lading and other shipping documents to the bank, falsely indicating that the goods had been shipped.

Based on these documents, the bank released the payment of 10 crore rupees. Subsequent verification revealed that no shipment had occurred, and the documents were fabricated.

Investigation and arrest

The EOW initiated an investigation following a complaint from CTI in July 2022. Gupta evaded questioning under the pretext of medical issues but was eventually arrested on 22 April 2025. During interrogation, he provided misleading information.

A confrontation involving the complainant and a shipping agent's representative confirmed that Gupta had fraudulently used company names and seals to fabricate documents. The High Commission of Singapore in New Delhi has been informed of his arrest.

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