Surat diamond firms face ₹500 crore cyber fraud allegations

A number of diamond companies and jewellery firms in Surat, the world’s largest diamond cutting and polishing hub, have reportedly damaged the reputation of the Indian gems and jewellery sector.

This follows the freezing of their bank accounts by the Mumbai police due to allegations of involvement in cyber fraud exceeding Rs 500 crore. 

Recent reports indicate that among around 50 companies, 29 from Surat's diamond sector, along with several jewelers, have engaged in transactions with traders from Karnataka, West Bengal, and Kerala, who are buyers of diamond-jewelry products, in Maharashtra. Authorities from four states, including Mumbai, Karnataka, West Bengal, and Kerala, have raised suspicions regarding transactions linked to cyber fraud. They have taken action by seizing the bank accounts of 29 traders from Surat, along with the remaining 21 from other states, under specific legal provisions in Mumbai. With the bank accounts frozen, approximately 500 crores belonging to diamondjewellery companies are now inaccessible, leading to a flurry of activity among traders in Surat.