CBI Makes Arrest in Winsome Bank Fraud

RAPAPORT... India's Central Bureau of Investigation (CBI) has arrestedHasmukh Shah in its ongoing investigation into Winsome Diamonds, Reuters reportedMonday. Shah is a former director and authorized signatory ofForever Precious Jewellery and Diamonds, a subsidiary of the Winsome Diamondsgroup. Both companies have been accused of defaulting on more than $939 million(INR 61 billion) in credit provided to them by a number of banks, includingPunjab National Bank, which jewelry tycoon Nirav Modi is also accused ofdefrauding. Shah is considered a close aide of former Winsome companydirector Jatin Mehta, who fled India in 2013 amid investigations. Mehta is nowsaid to reside in St. Kitts and Nevis, a Caribbean island nation that doesnot have an extradition treaty with India. In 2017, the CBI registered multiple cases against Winsome.Last month, the National Company Law Tribunal ordered bankruptcy-resolutionproceedings against both Winsome and Forever Precious. The law-enforcement agency said Shah would appear before aMumbai court Tuesday.The company could not be reached for comment.Image: avagyanlevon/Shutterstock