A diamond trader in Mumbai has allegedly fled after misappropriating diamonds worth around Rs 4 crore that he had taken from several traders for sale, police said. The Bandra-Kurla Complex (BKC) police have registered a case of cheating and criminal misappropriation against diamond trader Smit Alpeshbhai Shah and launched a search for him.
According to the police, Shah had allegedly taken diamonds from traders at the Bharat Diamond Bourse (BDB) on the assurance that he would sell them and make the payments later. However, he allegedly neither returned the diamonds nor cleared the dues. The complaint was lodged by Mrugesh Hasmukh Shah, a sales manager with Stellar Gems Private Limited, a diamond trading company located at the BDB in BKC.
The complainant told police that he was acquainted with Rajendra Momaya, proprietor of Shum Diamond Company, who introduced him to Parshwapadya Diamond, a firm owned by Smit Shah. Stellar Gems had been carrying out diamond purchase and sale transactions with Shah’s firm for the past few months. Initially, Shah allegedly made payments on time for diamonds purchased from the company, thereby gaining its confidence.
Subsequently, the company supplied diamonds weighing around 983 carats and valued at nearly Rs 4 crore to Shah’s firm in several consignments for sale, police said. However, the payments were not made within the agreed period despite repeated follow-ups. After June 2026, Shah allegedly stopped responding to calls and messages, according to the complaint.
The complainant further alleged that Shah had set up a bogus company with the intention of cheating diamond traders and subsequently fled after obtaining diamonds worth around Rs 4 crore. During the preliminary inquiry, police found that Shah had allegedly taken diamonds from several other traders at the BDB under similar arrangements, an official said.
The police are investigating the case and conducting a search for the accused.
