3 Indians arrested in Hong Kong for money laundering
On December 18, acting on a tip-off by the DRI, the customs department arrested three Indians and one foreigner – directors of five diamond and jewellery companies -- in Hong Kong.
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As per the modus operandi, the five Hong Kong-based companies sold synthetic diamonds as high-value natural ones to the firms in India. (Representational Image)The Hong Kong customs department, with inputs from the Directorate of Revenue Intelligence (DRI) in Surat, has arrested four persons for their alleged involvement in money laundering of USD 64 million, done in the guise of carrying out diamond trade.
On December 18, acting on a tip-off by the DRI, the customs department arrested three Indians and one foreigner – directors of five diamond and jewellery companies — in Hong Kong. While searching their premises, the custom officials seized 1 million Hong Kong dollars, natural diamonds weighing 290 carats, worth 8 million Hong Kong dollars, and over 1,000 synthetic diamonds.
The officials found that the firms were exporting synthetic diamonds to Karolina Trading India Company based at Sachin Special Economic Zone (SEZ) but passing them off as natural high value diamonds.
This comes after four businessmen were arrested by the DRI from Sachin SEZ on December 14, 2021. One among those arrested was found with cut and polished natural diamonds worth Rs 1.34 crore. He was identified as Rakesh Rampuria, a partner in Karolina Trading India Company. The DRI later raided the company and arrested Rampuria’s two partners, Vikas Chopra and Sagar Shah. A man from Mumbai, identified as business partner Chirag Bagadiya, was also arrested. All four are currently out on bail.
An official, who was part of the raid at Karolina in Surat, said, “Through the Ministry of External Affairs, we requested Hong Kong customs authorities to carry out further procedures. We shared names and addresses of the 24 firms that have carried out export and import of diamonds with Karolina.”
As per the modus operandi, the five Hong Kong-based companies sold synthetic diamonds as high-value natural ones to the firms in India. The buyer in India transferred the money into 13 bank accounts belonging to the companies. Officials said the companies carried out around 130 transactions with Karolina in 2021, laundering 500 million Hong Kong dollars.
“As per the documents seized from Karolina, diamonds worth Rs 1,016 crore were imported from 11 Hong Kong-based firms in 2021. But the real value of diamonds imported was Rs 8 crore. The documents also show that Karolina exported diamond jewellery and loose diamonds worth Rs 915 crore to 11 firms in Hong Kong. During interrogation, the accused confessed that till date they have been involved in outward remittance worth Rs 675 crore,” said an official.
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