New Delhi: Diamond jeweller Nirav Modi allegedly sold fake diamond rings to a Canadian national that cost the latter US $200,000 (Rs 1.4 crore), his girlfriend and has resulted in him being depressed.

Nirav Modi is accused of Rs 13,500 crore loan fraud at Punjab National Bank (PNB). He allegedly sold two fake diamond rings to a Canadian man named Paul Alfonso for US $200,000 in Hong Kong.

Alfonso bought the rings from Modi to propose to his girlfriend. According to the South China Morning Post, their celebration took a sour turn when they found out that the diamonds were fake. Alfonso was not aware of the fraud charges on Modi. They first met in 2012 and Alfonso looked up to Modi as ‘kind of an older brother figure’.

Earlier in April, Alfonso sent an email to Modi, requesting a ‘special’ engagement ring at the budget of $100,000. He wanted to propose to his girlfriend.

In response, Modi offered a ‘perfect’ 3.2-carat a high-quality grade and colourless stone at US $120,000. However, Alfonso’s girlfriend expressed interest in another ring that cost $80,000. Alfonso made the payment for both rings to a Hong Kong account, and he received the rings in June.

In August, when Alfonso’s fiancée took the rings to an appraiser, the couple found that the diamonds were fake. Eventually, he found out about the charges against him, his bankrupt companies and loan defaults.

This incident led to a break-up between the couple. Alfonso, who slipped into depression soon after, said, “We broke up literally after one or two days … It was just too much for both of us to handle. It does not make sense to her, because she says: ‘You are a pretty smart guy, how did you let someone scam you out of US$200,000 without making sure the transaction was legitimate?”

Alfonso has filed an unlimited civil lawsuit against Nirav Modi, suing him for $4.2 million.