HYDERABAD: Four persons, including the managing director of Sri Krishna Jewellers, Pradeep Kumar, have been arrested by the Directorate of Revenue Intelligence (DRI) for diversion of more than 1,100 kg of gold, worth more than Rs 330 crore, into the local market, in violation of licence agreements. The violations were detected at the firm’s unit in the Raviryal SEZ, on the outskirts of Hyderabad.
By diverting the gold, the jeweller was saving 13 per cent on customs duty. As much as 21 kg of foreign-market SEZ gold, 6.8 kg of gold jewellery, 491 kg of semi-precious material, and other items, worth Rs 14.87 crore, were seized.
The jeweller had an SEZ license only to import gold to make jewellery and to export the same to foreign destinations. In a series of searches, the DRI learned that the jeweller was declaring an export consignment as gold jewellery studded with semi-precious stones. However, it found that the consignment had crudely-made jewellery with just traces of gold.
The consignment, which the jeweller claimed had 19 kg of gold and 2 kg of semi-precious stones, actually had just 565 g of gold and 20.85 kg of stones. The declared value of the export consignment was Rs 5.45 crore, but it was worth just Rs 22.16 lakh. The consignment has been seized for inquiries.
DRI officials found that the remaining gold, which was to be part of the consignment, was being diverted and sold in the local market. Discrepancies were also found in the stock held at the SEZ unit and a unit in Banjara Hills.