Revealed: How jewellers scam banks Nirav-Modi style

As the epic Rs 12,600-crore fraud tied to diamond industry rippled through the country's banking sector, an India Today investigation has unearthed what appears to be a massive round-tripping of precious gems to secure credits fraudulently from state-run lenders.

The investigation in the financial hub of Mumbai revealed how unscrupulous diamond merchants ship the same stocks back and forth to rip off government banks with inflated valuations in their books.

According to RBI estimates, Indian banks have a combined exposure of $11 billion to the gems and jewellery industry.