The Hindu : New Delhi News : Two nabbed for cheating

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Tuesday, Mar 13, 2007
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New Delhi

Two nabbed for cheating

Staff Reporter

Allegedly duped a Dubai-based firm of jewellery worth Rs. 3.5 cr.

NEW DELHI: Two jewellers have been arrested by the Economic Offences Wing (EOW) of the Delhi police on charges of cheating a Dubai-based export-import firm of gold jewellery worth Rs. 3.5 crores.

Shashi Kant Mittal, who had a jewellery firm in London, lodged a complaint with the EOW alleging that two jewellers, Kewal Garg and Gautam Verma, had cheated him.

Mr. Mittal said Kewal approached him a few years ago with a proposal to set up a firm in Dubai so that the former could get jewellery items made and sent to him from the excise-free zone of Noida, and earn more profits in the process.

Lured by the prospect of making good profit, Mr. Mittal established a firm named Cornich Jewellery Limited in Dubai and made Kewal one of its directors.

Mr. Mittal began sending gold blocks to Kewal and his associate Gautam to convert them into jewellery at his Noida workshop named Gold Craft and then send it back to Dubai for sale by his firm. In all, gold worth Rs. 3.5 crores was sent to Gold Craft.

However, it is alleged that Kewal, Gautam and one Prabhat Kumar entered into a conspiracy and instead of sending the jewellery to Mr. Mittal they took it to Dubai and sold it somewhere else.

While sending the consignment by air, the accused prepared two sets of documents, one to show the Customs Department that it was for Cornich and the other to produce it at Dubai airport showing that the jewellery was meant for another firm, Al-Salam Jewellery. The police found out that the accused paid Al-Salam its commission and got back the jewellery. They allegedly sold the ornaments in Dubai's open market.

Acting on the complaint, the EOW registered a case and arrested Kewal and Gautam on March 6. A hunt is now on for Prabhat Kumar.

Red corner notice

Earlier, Kewal had allegedly stolen some gold jewellery from Mr. Mittal's Dubai office in 2004. After a complaint was lodged against him with the Dubai police, Kewal allegedly fled to India. The Dubai police had got a red corner notice issued through the Interpol against him, which was received by the EOW in February 2006. Accordingly, he was arrested and released on conditional bail after furnishing a surety of Rs. 90 lakhs.

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