Sleuths of Directorate of Revenue Intelligence (DRI) busted a racket of fraudulent export of gold jewellery, allegedly by a Special Economic Zone unit here.

The officials also arrested four people in the connection.

A release from the DRI's (Hyderabad Zonal Unit) said, its officials detected diversion of more than 1,100 kg of SEZ gold into the local market.

DRI officers carried out searches from May 3-5 at a unit situated in Gems and Jewellery SEZ at Ravirala village and found that it was indulging in fraudulent export of gold jewellery and diversion of SEZ gold into the local market, the release added.

According to DRI officials, the said unit had taken SEZ license for import of Gold and manufacturing of gold jewellery meant for exporting the same to foreign destinations.

It was later found that the unit was wrongly declaring export consignment as gold jewellery studded with semi-precious stones.

"While the value of the export consignment was declared as Rs. 5.45 crores, it was found that it is actually worth only Rs.22.16 lakhs. The fraudulent export consignment was seized," the statement added.

DRI also seized the mis-declared stock, which includes 21 kgs of foreign-marked SEZ gold, 6.8 kgs of gold jewellery, 491 kgs of semi-precious stones and other material involved in this fraud, totally valued at Rs. 14.87 crores.

As per preliminary estimates, the unit has diverted over 1100 kgs of gold, the unit said.

Four people have been taken into arrest regarding the case and further investigation is underway.

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