Surat diamond fraud: Gujarat Police nab alleged mastermind behind Rs 4 crore cross-border digital racket

AHMEDABAD: What appeared to be routine international diamond trade orders allegedly turned into a sophisticated cross-border fraud operation, with criminals exploiting the trust of Surat's diamond merchants by impersonating buyers associated with reputed firms in the United States.

Key points

• The case came to light after a Surat trader was allegedly cheated in October 2025.
• With Nitin Kumar allegedly being a key operator in the racket, the Eco Cell is seeking his custodial remand to extract crucial information regarding the syndicate's operations.
• While a number of accused were arrested earlier, Nitin Kumar alias Kana remained at substantial, prompting investigators to intensify the search.
• The breakthrough came when the Eco Cell received information regarding Nitin Kumar's whereabouts.
• The latest arrest comes after the Surat Eco Cell had earlier arrested five associates allegedly linked to the international syndicate.

Gujarat's Surat Police Eco Cell has now arrested Nitin Kumar alias Kana, allegedly the mastermind of the racket, in connection with a fraud involving diamonds worth US USD 5.32 lakh, equivalent to more than Rs 4 crore.

According to the investigation, the gang first studied the digital footprints of diamond traders and foreign firms through a prominent international diamond industry platform.

Notably, the accused allegedly applied the information available on the platform to understand the traders' businesses, view their diamond designs and then create bogus profiles in the names of foreign businesses.

Once the fake identities were ready, the accused allegedly approached Surat traders posing as genuine overseas buyers. They then built trust through online conversations before placing bulk diamond orders.

Meanwhile, the deception did not stop at fake firm identities. Investigators discovered that the accused allegedly employed virtual gateways and WhatsApp accounts linked to foreign numbers to communicate with traders, making the transactions appear to be international business deals.

Police remarked the accused allegedly ordered diamonds from Surat traders with the assurance that the entire payment would be produced within six days. The diamonds were then allegedly routed towards Dubai and Hong Kong, turning what appeared to be legitimate export transactions into a carefully planned fraud.

Nevertheless, once the diamonds reached their destinations, the alleged buyers suddenly disappeared. According to police, the accused would permanently deactivate their virtual phone numbers, email accounts and laptop IDs, effectively wiping out the digital trail before going underground.

For context, the modus operandi, investigators believe, was simple but calculated: create a credible foreign identity, gain the trader's confidence, secure high value diamonds on deferred payment, move the consignment overseas and then erase the digital identity.

ACP G A Sarvaiya of the Surat Police Eco Cell remarked the international nature of Surat's diamond trade and the industry's dependence on digital platforms were allegedly exploited by the accused.

He explained that Surat's diamond traders routinely upload their diamond designs on international platforms, allowing potential buyers to view the products and contact the sellers directly.

According to Sarvaiya, criminals allegedly misused this legitimate business mechanism to identify potential targets and deceive them.

Notably, the ACP remarked, "Surat traders upload their diamond designs on an international website, where buyers can view the designs and directly approach the concerned trader. This system is meant to facilitate genuine international trade. Nevertheless, some criminals have been misusing the platform by collecting information concerning traders and foreign firms and then using it to commit fraud."

For context, the case came to light after a Surat trader was allegedly cheated in October 2025. Based on the complaint, police introduced an investigation and began identifying members of the syndicate.

In practice, the breakthrough came when the Eco Cell received information regarding Nitin Kumar's whereabouts. Police subsequently arrested him in connection with the case.

Sarvaiya remarked the accused had allegedly obtained the diamonds illegally and handed them over to another member of the syndicate.

He remarked, "A complaint of fraud involving more than Rs 4 crore was registered in this case. Diamonds worth around Rs 4 crore have additionally been recovered. Seven accused were named in the complaint, and five of them have so far been arrested."

In practice, the arrest has now opened a fresh line of investigation for the Eco Cell, particularly into the movement of the diamonds after they allegedly left India.

For context, the latest arrest comes after the Surat Eco Cell had earlier arrested five associates allegedly linked to the international syndicate.

Police are now attempting to establish the exact hierarchy of the racket, identify the role played by each accused and determine whether the gang operated through other bogus foreign firms and digital identities.

Investigators are particularly interested in tracing the alleged supply chain stretching from Surat to Dubai and Hong Kong, where the diamonds were reportedly sent after being procured from traders.

Police want to know how plenty of Surat traders were allegedly cheated, how numerous bogus foreign firms were created, where the diamonds were ultimately sold or transferred, and how the proceeds were handled.

For context, the investigation is additionally anticipated to focus on the digital infrastructure allegedly applied by the gang, including virtual phone numbers, WhatsApp accounts, email IDs, laptop identities and international communication gateways.

Notably, the police believe that dismantling the digital network could reveal whether the accused were operating only in Surat or had targeted diamond traders elsewhere as well.

Taken together, the developments around surat diamond fraud: Gujarat Police nab alleged mastermind behind Rs 4 crore point to a situation that is still moving, and the coming days should bring more clarity.