The Mumbai unit of the Directorate of Revenue Intelligence today filed a case against Nirav Modi companies for diversion of diamonds from special economic zone units to the domestic market.
These two group companies – Firestar International Pvt Ltd. and Firestar Diamond International Pvt Ltd. which belong to Nirav Modi – allegedly diverted duty-free diamonds and pearls worth Rs 892 crore, the DRI said in a statement. These companies are located at SEZs in Surat and Jaipur.
Investigation so far reveals that there was a difference in the declared stock value of the diamonds and pearls in the SEZ units when compared with their ascertained value, the statement added. “This clearly indicates that certain stocks of these goods gave been diverted to domestic tariff area which also includes customs duty of Rs 52 crore.”
Modi and his uncle Mehul Choksi, along with directors of the Nirav Modi and Gitanjali groups, are under investigation by the Central Bureau of Investigation and the Enforcement Directorate for alleged fraud amounting to nearly Rs 13,000 crore against Punjab National Bank.
In 2014, the investigating agency had filed a similar case of customs duty evasion against three SEZ companies which include Firestar Diamond International and Firestar International and Radashir Jewellery.
The companies had paid the DRI Rs 48.21 crore, by way of customs duty along with interest and penalty, in that case.
Mehul Choksi Refuses To Join CBI Probe
Earlier, Mehul Choksi had refused to join the CBI probe, for the second time, claiming that “untenable” allegations had resulted in the “sudden closure” of his business, and exposed him and his family to “threats” from former associates, newswire agency PTI reported.
In a letter to the CBI dated March 16, Choksi also mentioned his medical condition, suspended passport, media trial to decline the agency’s communication asking him to join the probe.
Watch this discussion with Aman Lekhi and KTS Tulsi, both senior advocates of the Supreme Court on the logical end to this investigation.