"First lady Dr Grace Mugabe is suing fugitive businessman Mr Jamal Joseph Ahmed for US$1.23 million over a diamond ring deal that went sour last year," The Herald newspaper said.
"In breach of the agreement, Mr Ahmed failed to deliver the ring, triggering a legal wrangle."
In 2015, Grace Mugabe placed an order for a 100-carat diamond ring worth US$1.35 million to mark the anniversary of her wedding to the 93-year-old leader.
"The plaintiff wanted to purchase a unique diamond ring for her wedding anniversary celebrations," said court documents seen by The Herald.
"The defendant tendered a diamond ring worth US$30,000 and naturally, the plaintiff refused to take possession of an inferior ring."
Grace Mugabe demanded a refund but Ahmed paid back just US$120,000.
In court documents filed last year, Ahmed said he had offered to repay the money in instalments and claimed he had already paid back US$150,000.
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