Gujarat High Court grants bail to broker in fraud case involving 319 diamonds

Gujarat High Court has granted bail to Pankaj Dhaduk, a diamond broker allegedly accused of selling around 80 diamonds worth ₹40 lakh lower than the market price, in a larger fraud case involving 319 diamonds valued at ₹1.11 crore.

The case stems from allegations against main accused Mahesh Rathod, who allegedly defrauded Mira J Company by obtaining the diamonds under the pretext of showing them to customers. Rathod reportedly informed the company that some diamonds had been selected, but repeatedly delayed payments, leading to the discovery of the fraud. The diamonds were subsequently put up for sale online at prices lower than the market rate by several persons.

An FIR was registered at Varachha Police Station in Surat under sections related to criminal breach of trust and other relevant provisions of BNS 2023.

Dhaduk, who was not named in the initial FIR, was arrested later on grounds that he sold part of the diamonds obtained fraudulently by Rathod.

The prosecution claimed Dhaduk received a commission of ₹50,000 for the sale and knew Rathod was not involved in the diamond business.

In its order allowing Dhaduk's bail plea, the court observed that it does not appear the applicant was part of the original criminal conspiracy to defraud the complainant. Despite a five-day remand, the investigating officer remained unclear on whether the diamonds sold by Dhaduk were indeed below market price or not. The court noted Dhaduk's role as a routine diamond broker engaged in buying and selling, with no criminal antecedents.

Dhaduk's counsel argued that he was unaware the diamonds were obtained through fraudulent means and had no involvement in the initial conspiracy. Considering the affidavit of the investigating officer, it does not appear either that the applicant – accused was part of the original criminal conspiracy or that the applicant knew that the diamonds had been obtained through fraudulent means and therefore, that they had been sold at less than the market price.

Opposing the bail, the prosecution highlighted the ongoing investigation and warning that Dhaduk's release could hamper proceedings