Mumbai DRI Cracks Down on Major Gold Duty Evasion Syndicate, Arrests Hong Kong Firm Director
The Directorate of Revenue Intelligence (DRI) has made a significant breakthrough in a high-profile customs fraud case, arresting the director of a Hong Kong-based company in Mumbai. The arrest is linked to a massive duty evasion fraud amounting to approximately Rs 83 crore, involving the illicit diversion of duty-free gold into the domestic Indian market.
Fraudulent Export Scheme Uncovered
According to DRI officials, the syndicate operated by fraudulently exporting imitation jewellery under the guise of genuine 22-karat gold jewellery. This deceptive practice allowed them to bypass customs duties and illegally channel the duty-free gold into the local market, where it was sold for cash through various traders. The elaborate scheme was designed to exploit regulatory loopholes and evade substantial government revenue.
Key Arrest and Investigation Details
The arrested individual has been identified as Rajpreet Kaur, the owner of M/s Kreacions Pvt. Ltd. Her arrest was executed based on a lookout circular issued by the authorities. The investigation gained momentum in 2022 when DRI officers examined an export consignment that was falsely declared as "22 karat mechanised plain gold jewellery," with a weight of 4,623 grams. On the same day, another export consignment was found to contain 845 grams of imitation jewellery, mis-declared as 22-karat gold jewellery.
Substantial Recoveries and Syndicate Scale
Follow-up searches conducted by the DRI led to the recovery of 4.5 kg of gold bars that lacked valid documentation, along with Rs 1.4 crore in cash. These recoveries underscore the scale and audacity of the operation. DRI officials have revealed that the syndicate successfully diverted nearly 1,560 kg of duty-free gold, highlighting a systematic and large-scale evasion effort that has significant implications for national revenue and economic integrity.
Implications and Ongoing Efforts
This case sheds light on the sophisticated methods employed by fraudsters to circumvent customs regulations and highlights the vigilance of Indian enforcement agencies in combating financial crimes. The DRI's actions are part of a broader crackdown on duty evasion and smuggling activities, aiming to safeguard the economy and ensure compliance with tax laws. Further investigations are likely to uncover additional details and potentially lead to more arrests as authorities continue to dismantle such illicit networks.
