(IDEX Online) - The owner of Indian lab grown company Sonani Jewels has been arrested with his two sons, accused of cheating another business in a deal worth Rs 50 crore (USD 5.6m).

News of the arrests has overshadowed the opening in Surat last week of what Sonani Jewels claimed was the world's biggest lab grown showroom.

Police in Surat are investigating complaints from Jusco General Trading and Asian Grow Diamond Company, both linked to the businessman Ankush Madhubhai Nakarani.

Nakrani reportedly signed an MOU for 16 lab grown diamond machines, which were each expected to produce 1,500 carats a month. He also handed over rough diamonds worth Rs 23.35 crore (USD 2.63m), based on promises of a buyer.

"They convinced me that investing in 16 systems would be highly profitable," said Nakrani in his police complaint, cited by The Blunt Times.

"I trusted them and transferred Rs26.60 crore (USD 3m) for the setup, believing in their promises.