A money-lending company is seeking $1 million interest from the Commissioner of Police, claiming the force wrongfully kept its 983 carats of diamonds - worth $4.35 million - for almost two years after the end of the relevant criminal investigation.
Barrister Dennis Law, representing Tsun Fat Finance Company Ltd, told a court yesterday police had seized 50 packets of diamonds in March 1998 during an investigation into an alleged deception case.
The Court of First Instance was told the diamonds were pledged to the company as security by a Taiwanese man who borrowed $4.35 million through four loans in February and March 1997.
Mr Law said the company had been a licensed money lender in Hong Kong since 1983. It was standard practice for it to take diamonds as security.
The criminal investigation into the alleged deception case ended in May 1999 without any prosecution being brought, Mr Law said.
But the diamonds were not returned to the company until March 13 last year, 22 months later.
