Gujarat: Four diamond firms get customs department notices

SURAT: Customs department has served notices to two diamond firms and two diamond merchants for giving wrong declaration about rough diamonds worth $35 million, a scam involving a leading diamond company of Mumbai.
The diamonds firms involved in the alleged scam purchased rough diamonds and used the account of the Mumbai-based company to export diamonds to different parts of the world. The customs department had confiscated in April 40 rough diamond parcels worth $35 million at BKC in Mumbai under sections 110 and 111 of Customs Act, 1962. Sources said the alleged scam is being probed under the direction of central authorities in New Delhi. The two diamond companies are based in Vile Parle and Bandra Kurla Complex (BKC) while the two merchants operate out of Opera House in Mumbai.
Until now, the customs department has issued notices to over 18 diamond companies, based in Surat and Mumbai, asking them to furnish details on the prices at which they purchased rough diamonds from this diamond company which has headquarters in Mumbai. The owners of the diamonds firms have been asked to furnish the prices at which they bought and imported diamonds in the last five years. These diamond firms are preferred customers of the diamond company, sources said.
Sources said diamonds imported through various channels were of low quality but overvalued so as to bring black money into the country. The diamond companies used the account of the leading diamond company to avail credit from its bank account, based on which the banks released payment to sellers abroad. The amount was later brought into the country through various routes under various alibis.
India imported 1,650.18 lakh carats of rough diamonds, valued at $15.72 billion in 2018-19. Rough diamond imports fell 17 per cent in value terms, indicating less demand for cut and polished diamonds due to imposition of IGST. Cut and polished diamonds worth $23.82 billion in value terms were exported in fiscal year 2019.