DRI registers case against Nirav Modi for diversion of diamonds worth Rs 890 crore

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The DRI probe has found a considerable difference in the declared stock value of the diamonds/pearls in the SEZ units compared to the actual value of the goods. Sources said the agency suspects diversion of some stock of the diamonds and pearls to the domestic tariff area by Modi’s firms.

However, this is not the first time when the DRI has alleged diversion of diamonds and pearls from the SEZ units of Modi’s firms. In 2015, the agency had booked a case of duty evasion of Rs 24.52 crore by Modi and three of his firms–Firestar Diamond International Pvt Ltd, Radashir Jewellery Company Pvt Ltd and Firestar International Pvt Ltd — located in the Surat SEZ. These firms had diverted imported, duty-free, high-value, cut and polished diamonds to the domestic market while cheaper low-value diamonds were used to make jewellery for export to sectors like Hong Kong and UAE.

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Earlier this month, the DRI initiated prosecution against Modi and his firms under section 135, 135A and section 140 of the Customs Act 1962 in the 2015 case. These sections grant the customs power to punish any person, a company and its directors in case of violations with imprisonment that may extend to three years or with fine, or both.

Modi and his firms have now come under the scanner of multiple investigating agencies such as the enforcement directorate, central bureau of investigation, income tax and the government’s serious fraud investigation office in connection with the alleged Rs 13000 crore fraud at PNB.