Surat diamond-fraud: Trader arrested for ₹1.81 crore misappropriation

Business Relationship Built on Trust Allegedly Exploited

Investigators reported that both parties had been trading for several years, with earlier transactions settled without issue. This history reportedly encouraged the complainant to extend higher-value consignments without immediate payment — a common practice in the diamond market, where trust often substitutes for formal collateral.

The accused allegedly claimed substantial demand from buyers and requested polished stones on credit. Once the consignments were delivered, however, he reportedly stopped responding to repayment reminders and became increasingly unreachable.

Police Trace Accused to Surat Through Technical Surveillance

After repeated delays and unfulfilled assurances, the merchant approached BKC Police Station and filed a complaint. An FIR was registered for cheating and criminal breach of trust. A dedicated team used technical surveillance tools to locate the trader in Surat, where he was arrested and brought to Mumbai for custodial interrogation.

Larger Investigation Underway Into Possible Similar Deals

Police are now verifying whether the accused may have taken consignments from other traders using the same approach. Given the closely networked nature of the BDB marketplace, authorities suspect that additional merchants may have been affected.

The case has prompted renewed concern in the diamond trading community about the risks associated with large credit-based agreements, especially when documentation is limited or informal.

Shunyatax Global Insight: Strengthening Risk Controls

Credit-heavy industries like diamonds rely heavily on interpersonal trust, but high-value deals without strong documentation can lead to severe financial exposure. Shunyatax Global advises traders and SMEs to:

• Implement stronger credit evaluation frameworks
• Use documented agreements for consignments
• Adopt traceable communication and secure payment channels
• Periodically review counterparties for financial reliability

For deeper insights on fraud risk, compliance strategy, and financial safeguards, visit Shunyatax Global’s knowledge hub.

Tags: #DiamondFraud #SuratTrader #MumbaiCrime #BharatDiamondBourse #CreditRisk #JewelleryIndustry #FinancialCrime #ShunyataxGlobal