CBI, ED hit a roadblock in Winsome Diamonds case; banks lose hope of repayment

IMA Ponzi scheme case: A multi-crore scheme run by Karnataka-based I-Monetary Advisory (IMA) and its group entities allegedly duped lakhs of people by promising higher returns using Islamic ways of investment. The Central Bureau of Investigation (CBI) is currently investigating the case and has filed at least three FIRs. (File image of the CBI headquarters)

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26 Aug, 2025 12:21

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Central Bureau of Investigation (CBI) has hit a roadblock in the loan default by two companies — Winsome Diamonds and Forever Diamonds — owned by Jatin Mehta. The government’s investigation agency is unable to file a chargesheet against the two UAE-based firms that have defaulted on Rs 6,800 crore of loans.

In 2015, the two companies had filed cases in the Sharjah Federal Court arguing that the companies had suffered a business loss of USD 1 billion (Rs 6,500 crore) due to non-payment from 13 UAE-based entities. The Sharjah court ruled in favour of Winsome Diamonds and Forever Diamonds.

In May 2017, UAE’s Appellate Court upheld the Sharjah court’s verdict.

A senior ED official told Moneycontrol: “When there is a crime/investigation involving two countries, it is important that the crime is proven in both the nations. And in this case, we have declared the case decree, but UAE court has ruled in favour of them due to which the UAE government is not providing us with the necessary information.”

The two government agencies are dependent on the United Arab Emirates (UAE) government for information about these 13 firms.

The case is also pending with the Enforcement Directorate (ED) as it can proceed only after CBI files a chargesheet. ED had last year sent Letters Rogatory to UAE seeking the information but it is yet to receive an official reply.

Letters Rogatory is a formal communication in writing sent by a Court, in which action is pending, to a foreign court or Judge requesting the testimony of a witness residing within the jurisdiction of that foreign court.

The 13 entities, which have allegedly defaulted on payments to the Mehta-owned firms, have challenged the Appellate Court’s order in the Supreme Court of UAE.

Bankers feel that this loan money is unlikely to be repaid by Winsome Diamonds and Forever Diamonds. Enforcement Directorate had earlier attached Rs 200 crore worth of assets in the case.

Emails sent and calls made to Punjab National Bank chief by Moneycontrol did not elicit any response.

At the time of sanction, lenders’ consortium led by PNB had given a loan of about Rs 4,500 crore against assets worth Rs 250 crore.