SoBo bizwoman fined 1.61 crore for smuggling in gold jewellery

Mumbai: Three years after Peddar Road-based businesswoman Vihari Sheth was arrested at the airport for smuggling diamond studded gold jewellery worth Rs 2.45 crore in her innerwear, the case came to an end.
The settlement commission has imposed a penalty of Rs 35 lakh besides directing her to pay Rs 37.5 lakh as fine and another Rs 88.32 lakh as duty.The commission also imposed Rs 10 lakh penalty on her uncle Jiten Sheth, who was accused of selling jewellery smuggled by Vihari. Jiten was also directed to pay Rs 30 lakh as fine and Rs 73.97 lakh as penalty for redeeming the jewellery seized from his showroom.
Vihari, who is the wife of businessman Abhishek Poddar, was arrested on August 1, 2013, a day after she arrived from Singapore, where her mother and father ran Vihari Jewels Pte Ltd and House of Gems. The officials also seized a Hublot watch. She was in jail for 57 days.
The Directorate of Revenue Intelligence probe that followed showed that in the past too she had smuggled jewellery and were sold through her uncle Jiten Sheth who ran an outlet at a suburban five star hotel. She had made 32 short trips in 27 months from Singapore. Sheth told the DRI that she had handed over smuggled jewellery in the past too. The showcause notice issued in respect of the jewellery smuggled by Vihari in the past is yet to be decided by the adjudicating authority. The jewellery was sold to several high profile clients at reduced prices.
DRI seized 41 pieces of unaccounted diamond studded jewellery valued at Rs 2.05 crore from Jiten’s outlet. Jiten’s claims that the jewellery were purchased from Vir Gems fell through after the proprietor denied it. DRI said the smuggled jewellery were sold to various jewelleries.
Vihari and Jiten had moved the settlement commission seeking immunity. The object of the commission is to create a channel to settle tax disputes expeditiously, its website said. The commission also suggested that the role of her parents required to be investigated. Esplanade Court issued non-bailable warrants against her Singapore-based parents, Manisha and Rajesh Sheth.
A DRI official said, “Delhi High Court has recently stated that the settlement commission does not have the power to settle cases of gold smuggling. This order of the commission opens a channel for all gold smugglers to approach the commission for immunity from prosecution. The customs Act proposes 15% penalty whereas in settlement commission offenders get away with less than 5% penalty.”