By TIOL News Service

KOLKATA, JUNE 16, 2018: THE DRI sleuths here nabbed the the promoter and the controller of the firm, M/s Shree Ganesh Jewellery House Ltd., Kolkata, a Premier Trading House and holder of Nominated Agency Certificate, who was found to be actively involved in the fraud of diversion of primary gold of over 1700 Kg among other violations like non-realization of remittance on account of Export of Gems & Jewelries to the tune of Rs. 7500 Crores and also defrauding of a consortium of Banks led by SBI by way of non-payment of loan to the tune of Rs 2672 Crores.

An intelligence was developed by DRI that the firm having several units in Manikanchan Special Economic Zone (MKSEZ), Kolkata was involved in diversion of gold imported duty free on the strength of being a nominated agency and also in its capacity as a SEZ unit. The firm, as per the intelligence could not realise the foreign exchange which was required to be realised against the exports from the SEZ and from the nominated agency.

Investigation reveals that during the currency of the Letter of Approval granted by the Development Commissioner, Manikanchan SEZ, the said company imported a total quantity of 35,746 kgs of gold free of import duty. It is estimated that the exports of Gold Jewellery made by the said unit during the currency of the Letter of Approval was of 34041 kg. Thus, there appears to be a diversion of 1705 Kg of Primary Gold.

Further, the inspection of the vaults and the safes kept in the SEZ units of the said company resulted in recovery of Gold Jewellery, precious stones including diamonds, etc valued Rs. 36.05 Crore (approx) as calculated by the Govt. approved valuers. These articles were seized under the provisions of Section 110 of the Customs Act, 1962 on the reasonable belief that the said jewelleries are manufactured out of the duty-free imported gold and as per SEZ Act, were to be exported within the validity of the LOA, but the exports were not effected with an intent to divert the goods to the local market.

Enquiries with RBI revealed that M/s Shree Ganesh Jewellery House Ltd, failed to realize export proceeds to the tune of Rs 7450 Crores on account of export of Jewelleries to the several Dummy and Shell companies at Singapore, Hong Kong and Dubai.

The case is also being investigated by Directorate of Enforcement and the CBI. The CBI investigation is based on a complaint of outstanding bank loans taken from Consortium of Bank led by SBI, while, ED is also investigating the case under Foreign Exchange Management Act, 1999 and under Prevention of Money Laundering Act 2002.