Diamond Fraud – BKC Police Search for Trader in ₹4 Crore Case
Diamond Fraud –The Bandra-Kurla Complex (BKC) police have registered a case against diamond trader Smit Alpeshbhai Shah after a company at the Bharat Diamond Bourse (BDB) alleged that diamonds worth nearly ₹4 crore were handed over to his firm for sale but were neither returned nor paid for. Police have begun efforts to locate Shah as part of their investigation into the alleged cheating and criminal misappropriation.
Diamonds supplied through several consignments
The complaint was filed by Mrugesh Hasmukh Shah, a sales manager at Stellar Gems Private Limited, a company operating from the Bharat Diamond Bourse in BKC. Mrugesh has been associated with the firm for around five years. The company is engaged in diamond trading as well as import and export activities and deals with several businesses in the industry.
According to the complaint, Mrugesh was acquainted with Rajendra Momaya, the proprietor of Shum Diamond Company. Momaya reportedly introduced him to Parshwapadya Diamond, a business owned by Smit Shah. Following the introduction, Stellar Gems began conducting diamond transactions with Shah’s firm.
Initial payments helped build confidence
The complainant told police that the business relationship initially appeared to be regular. Shah’s firm allegedly made payments on time for diamonds purchased during the early transactions. These payments reportedly helped establish confidence between the two sides and led Stellar Gems to continue supplying diamonds.
Over the following months, the company allegedly provided diamonds weighing about 983 carats to Shah’s firm in multiple consignments. The total value of the diamonds supplied was estimated at close to ₹4 crore. The consignments were reportedly handed over with the understanding that Shah’s firm would sell the diamonds and make the agreed payments afterward.
Payments allegedly remained pending
According to the complaint, the expected payments were not made within the agreed period. The company allegedly contacted Shah several times seeking payment and clarification regarding the outstanding amount, but the dues remained unsettled.
The complainant further alleged that Shah stopped responding to calls and messages after the end of June 2026. With no payment received and the diamonds also not returned, the company eventually approached the BKC police to report the matter.
Police find similar allegations
During the preliminary inquiry, police allegedly found indications that Shah had obtained diamonds from other traders operating from the Bharat Diamond Bourse under similar arrangements. Investigators are examining these transactions to determine the overall extent of the alleged financial irregularities.
The complaint also alleges that Shah had established a company with the intention of deceiving diamond traders and later left after obtaining the valuable consignments. These allegations are part of the ongoing police investigation and have not yet been established in court.
Case registered and search underway
After examining the complaint and conducting preliminary verification, the BKC police registered a case against Smit Alpeshbhai Shah for alleged cheating and criminal misappropriation. Investigators are now attempting to trace him and are looking into the transactions involving Stellar Gems as well as other traders.
Police are also examining the circumstances under which the diamonds were supplied, the payment agreements between the businesses and whether additional traders may have suffered similar losses. Further details are expected to emerge as the investigation progresses.