A case of diversion of diamonds and pearls from Special Economic Zone (SEZ) units in Surat by Modi was booked in December 2014, by the DRI, Mumbai Zonal Unit.
Fugitive diamantaire and Punjab National Bank (PNB) scam accused Nirav Modi has been declared as an absconder by the Chief Judicial Magistrate of Surat. Directorate of Revenue Intelligence (DRI) had filed a case against Modi for allegedly evading customs duty on import of diamonds and pearls.
Chief Judicial Magistrate B H Kapadia declared Modi an absconder in a case filed against him in December 2014 by the Mumbai zonal unit of the DRI.
As per the DRI, Modi's companies, located in the Surat Special Economic Zone (SEZ), were allegedly involved in customs duty evasion.
Public Prosecutor Nayan Sukhadwala told PTI the judge asked Modi to present himself before the court by November 15, or else the DRI would be permitted to take further action against him.
The DRI had moved an application under the Criminal Procedure Court seeking that the diamond merchant be declared an absconder as an arrest warrant against him could not be executed.
Modi fled the country this Jaunary before an alleged multi-billion dollars fraud at Punjab National Bank came to light and the CBI registered a case against him.
The case in Surat pertains to diversion of duty-free imported diamonds and pearls by Firestar International Pvt. Limited, Firestar Diamond International Pvt Ltd, and Radashir Jewellery Company, all situated in Surat SEZ and owned by Modi.
In the Surat SEZ, goods can be imported duty-free on the condition that they will be exported after value-addition (such as polishing and cutting of raw imported diamonds).
The DRI alleged that duty-free diamonds and pearls imported by these companies were secretly sold in local markets, and in their place locally produced products were exported.
An export consignment seized by the DRI from Sahar Air Cargo in Mumbai was found to be highly overvalued.
(PTI )