In a stunning case of deception within India's bustling diamond industry, a jeweller from Gujarat has been booked for allegedly swindling a Mumbai-based diamond merchant out of precious stones valued at Rs 1.81 crore. The incident highlights the vulnerabilities in high-stakes gem trading, where trust often underpins multimillion-rupee deals.

The accused, 50-year-old Rajeshkumar Sharma from Surat, India's diamond polishing hub reportedly approached Rajesh Becharbhai Vithani, a partner in a prominent diamond trading firm in Mumbai, in March 2025. Sharma claimed to have a reputable client eager to purchase top-quality diamonds. Trusting the proposition, Vithani handed over 920.68 carats of diamonds, expecting prompt payment or return.

However, Sharma neither paid nor returned the gems, instead offering a series of excuses that raised suspicions. Vithani, realizing the potential fraud, filed a complaint, leading to a First Information Report (FIR) on August 6, 2025, at the Bandra-Kurla Complex (BKC) police station in Mumbai. The charges include cheating and criminal breach of trust under the Bharatiya Nyaya Sanhita (BNS).

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Surat, known as the "Diamond City," processes about 80% of the world's rough diamonds, contributing significantly to India's economy with exports exceeding $20 billion annually. Mumbai, meanwhile, serves as a major trading center, with the Bharat Diamond Bourse in BKC being one of the world's largest diamond exchanges. Such scams, though not uncommon, erode confidence in an industry reliant on handshake deals and long-standing relationships.

Authorities are now investigating Sharma's background, including any prior complaints or connections to similar frauds. Police sources indicate that efforts are underway to trace the missing diamonds, possibly sold on the black market or smuggled abroad. This case echoes previous incidents in the gem trade, such as the 2023 Nirav Modi scandal, which involved billions in bank fraud and shook the global diamond market.

As the probe continues, industry experts urge traders to adopt stricter verification processes, including digital tracking and escrow services, to prevent future betrayals. Vithani's firm, meanwhile, faces potential financial setbacks, underscoring the high risks in this glittering yet precarious business.

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