Diamonds fail to glitter for customs

The department plans to hold another auction of Rs 30 crore worth diamonds plus gold and studded jewellery on March 24.

A realistic valuation of the diamonds has been done, including the lots that were put up for auction on March 5, Sekhon stated. He added that the customs department has decided to advertise the forthcoming auction more aggressive.

Of the 30-odd bids that had been allowed subject to the commissioner’s confirmation on March 5, not a single one was confirmed, Sekhonrevealed. "The bids were much lower than acceptable," he said, which means that only one lot of a single diamond worth Rs 55,000 a carat was sold.

However, a shortage of rough diamonds in the market and the close of the financial year on March 31 is expected to evoke a better response next week.

The successful bidders will also be allowed to have their lots sealed as soon as a bid goes through. Several bidders at the last auction had expressed reservations , since the diamonds had not been actually brought to the venue of the auction, for security reasons.

The customs department has been authorised to conduct the auctions with a view to reducing the massive revenue shortfall, which is about Rs 5,000 crore, this year.

The department is also conducting an auction of 100-odd imported cars on Saturday. It has already collected about Rs 24 crore from sale of crude jewellery and gold seized over the last few years.