A bank manager at India's Allahabad Bank has foiled an attempted letter of credit (L/C) forgery.

Although this is a relatively minor case, investigators in India are looking into the possibility that the forgery is just one operation within an L/C fraud ring.

Forged documents

Bank manager, Nandlal Grover, called a halt to the discounting of two L/Cs issued by Dena Bank, after checks by another Allahabad Bank employee.

He sought to verify with the issuing bank that the L/Cs were in order but officials at Dena Bank said the documents were forgeries.

Arrests

Two men, Raj Jagtani, the proprietor of BK Enterprises and his associate, Bharat Dattani, have been arrested in the matter.

The attempted fraud, if it had been successful, would have netted the perpetrators the equivalent of around US$162,000.

However, police investigating the matter suspect that this attempted fraud may indicate that there is an L/C fraud ring in operation and are investigating this theory.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.