A racket of fraudulent export of gold jewellery, allegedly by a Special Economic Zone unit here, has been busted and four people arrested, the Directorate of Revenue Intelligence said Tuesday.

DRI sleuths 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, a release from theDRI's (Hyderabad Zonal Unit) said.

Investigation revealed that the unit was misdeclaring export consignment as gold jewellery studded with semi-precious stones.

On actual examination, it was found that it was not gold jewellery but crudely-made jewellery of stones with traces of gold in it, the DRI said.

Major discrepancies were also found in the stock held at the SEZ unit and at another unit of the same group at Banjara Hills.

The misdeclared stock, which includes 21 kg foreign-marked SEZ gold, 6.8 kg gold jewellery, 491 kg of semi-precious stones and other material involved in the fraud, totally valued at Rs 14.87 crore, have been seized, the DRI said.

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