Enforcement Directorate says diamond import firm Rajeshwar Exports violated SEZ rules
As per the remand application, SEZ authorities in coordination with ED officials intercepted one live import consignment of Rajeshwar Exports inside the SEZ and learnt that the consignment (diamonds) were overvalued more than 10 times.
Picture for representational purpose only.
In a shocking revelation, the Enforcement Directorate (ED) has informed the special PMLA court in Mumbai that diamond import firm Rajeshwar Exports among others had violated all the rules of special economic zone (SEZ) in Sachin, Surat.
As per the remand application, SEZ authorities in coordination with ED officials intercepted one live import consignment of Rajeshwar Exports inside the SEZ and learnt that the consignment (diamonds) were overvalued more than 10 times.
THE STORY SO FAR
- "In SEZ, Customs officials ignore their responsibilities due to non-recovery of any custom duty since SEZ is a duty-free zone", the source within the agency told India Today.
- In December 2016, the ED had seized diamonds worth above Rs 34 crore from Rajeshwar Exports, but after "valuation audit" of these diamonds, it was revealed that the real prices of these diamonds were not more than Rs 2.5 crore.
- Last week, the ED had arrested Kritika Dahal, director of International Rising Ltd, a shell company of Rajeshwar Exports based in Hong Kong.
- On Tuesday, Kritika was remanded to judicial custody till March 14. It was found that IRL had received Rs 990 crore for supply of 220 consignments of diamonds/gold, which appeared to be overvalued more than 10 times.
- However, in the last one year, Rajeshwar Exports had made an outward remittance of approximately Rs 1421 crore to IRL, Fortune Yield Corporation and Lucy Asia Ltd.
- During its investigation, the ED found that at least 500 bank accounts were opened by at least ten shell companies for illegal transactions of huge amounts, with the ulterior motive of money laundering.
- Out of Rs 1421 crore, more than Rs 92 crore was deposited in various accounts in cash after the demonetisation drive began in November 2016. The money was then transferred to the accounts of Rajeshwar Exports and subsequently for outward remittance (but no inward remittance has been received).
- It was also revealed that a sum of Rs 1478.85 crore is yet to be received by Rajeshwar Exports against the export made from these companies. "The bank accounts of Rajeshwar Exports, Unique Trading and Macquire Multitrade have been scrutinised. It has been revealed that the accounts of Rajeshwar Exports were used to import and export jewellery/diamonds", the remand application said.
- As per the remand application, accused Kritika was intercepted and summoned under Section 50 of the PMLA to appear before the Enforcement Directorate on February 25. Later that evening, she was arrested for non-cooperation under Section 19 of the PMLA.
- Kritika's counsel argued that ED had "detained her illegally" at midnight as soon as she landed at the Mumbai Airport from Hong Kong. "Kritika was surprised to know that a lookout notice had been issued against her at the airport. Apart from that, she was issued a legal summon only early next morning i.e. on February 25", the counsel said. The court has sought a reply from ED on this issue by March 8.
- In her statement to ED, she has revealed that she was a former director of Auro Gold Jewellery and was working as the director of IRL, Hong Kong. She had travelled almost seven times since May 2015 to Hong Kong.
- "In her statement, Kritika has revealed that she became director of IRL on instructions of Ritesh Jain and Amritlal Jain. Ritesh is the main conspirator who is absconding from the country", the official said. According to sources, Ritesh is hiding in the Gulf region.
- As those involved in this crime have gone to Hong Kong and Dubai, the agency would soon issue a letter to both countries, seeking details of the financial transactions related to IRL, Rajeshwar Exports and other shell companies.
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