The Directorate of Revenue Intelligence (DRI) has arrested Montu Gandhi, a resident of Navsari, for his alleged involvement in a customs duty evasion case involving approximately Rs 65 crore. The case is linked to a unit operating within the Surat Special Economic Zone (SEZ).
Details of the Investigation
The DRI has been investigating MS Shree Naklang Jewellers, located in the Surat SEZ’s Diamond Park in Sachin. The firm is suspected of running a scheme where cut and polished natural diamonds were imported duty-free under SEZ provisions and subsequently diverted into the domestic market. The unit allegedly replaced these high-value diamonds in export consignments with inferior stones such as low-grade diamonds, cubic zirconia, moissanite, and other simulants. Additionally, the firm falsely declared the quality and value of the goods in export documents.
Production Capacity Violations
The firm under investigation had official permission to manufacture silver jewellery studded with natural diamonds, with an approved annual production capacity of 8.150 kg. However, an analysis of records revealed that during the financial year 2025-26, the unit exported more than 24 kg of silver jewellery studded with natural diamonds, far exceeding its sanctioned capacity.
Examination of Export Consignments
The alleged irregularities came to light after export consignments were examined on January 28 in the strong room of the Surat SEZ. The consignments comprised 20 parcels covered under shipping bills, declared as 92.5% cut and polished diamond-studded silver jewellery, with a total declared value of Rs 134.23 crore.
However, a valuation exercise conducted by the DRI found the actual worth of the goods to be only Rs 4.93 crore, which is merely 3.68% of the declared value, according to officials. Based on these findings, the DRI estimated that the customs duty recoverable amounts to around Rs 65 crore.
Further Findings
The investigation further revealed that the value of imported goods suspected to be part of the racket was around Rs 1,174 crore. The DRI is continuing its probe into the matter.
