Surat Diamond Heist Turns Out Fake: Police Expose Rs.32 Crore Insurance Scam

Surat | Gujarat —- The much-hyped theft of diamonds worth ₹32 crore in Surat’s Varachha area has taken a shocking twist. Surat Police Commissioner Anupam Singh Gahlaut on Wednesday revealed that the so-called heist was nothing more than an elaborate insurance scam masterminded by the owner of the diamond firm himself.

The accused, identified as Devendra Kumar Chaudhary, owner of DK Sons & Company, had lodged a complaint on August 18, claiming that 1.12 lakh carats of diamonds, worth ₹32.47 crore, along with ₹5 lakh cash, were stolen from his office. The complaint also stated that the culprits destroyed CCTV evidence by taking away the DVR.

However, intense police investigation revealed that no theft had taken place and the “victim” himself was the mastermind.

“Complainant Turned Accused”

Police Commissioner Gahlaut said, “The complainant himself turned out to be the accused in this so-called robbery. Devendra Kumar Chaudhary was heavily in debt — around ₹30 crore — and conspired to stage a theft to claim insurance. No diamonds were stolen.”

Police have arrested Devendra, his son Piyush, and their aides Vikas and Ramjivan. Vikas, the driver, was reportedly planning to flee to Dubai after the incident. Four other accused remain absconding.

Mounting Debts Behind the Conspiracy

Investigations revealed that the 52-year-old businessman, despite running a company with an annual turnover of around ₹300 crore, was neck-deep in financial trouble. His business had suffered due to the global downturn in the diamond industry.

Chaudhary had taken loans of ₹14 crore by mortgaging his bungalow, borrowed ₹7 crore from the market, and an additional ₹4 crore from Rajasthan, pushing his total debt to over ₹25 crore. Just ten days before the staged robbery, he had increased his insurance cover to ₹20 crore, further raising police suspicions.

“He saw insurance as a way to repay debts. The so-called heist was nothing but a carefully planned fraud,” said an investigating officer.

How Police Cracked the Case

On the day of the alleged theft, police found cigarette butts and gutka pouches at the crime scene, suggesting outsiders were involved. But inconsistencies in Chaudhary’s statements and suspicious insurance policy renewal triggered deeper interrogation.

Cross-examination eventually revealed the conspiracy, shocking even seasoned investigators.

Fallout in Surat’s Diamond Hub

The revelation has sent shockwaves through Surat’s diamond industry, already reeling under recession. Traders fear the incident could damage the city’s reputation, especially with insurers tightening scrutiny.

A senior diamond trader, requesting anonymity, said, “This kind of fraud tarnishes the entire industry’s image. Thousands of genuine merchants in Varachha and Katargam may now face stricter insurance checks.”

As the probe continues, police are hunting the remaining absconding accused while examining whether more insiders were involved.

Commissioner Gahlaut assured strict action: “This is not just a case of cheating but a serious fraud against the insurance system. We will ensure every accused is brought to justice.”