Mumbai: Jewellery firm director arrested in gold export fraud case – Times of India

MUMBAI: The special intelligence and investigation branch of customs has arrested a director of a jewellery firm for alleged irregularities in the export of gold ornaments to a Dubai-based company.
The officials have found that the firm had misdeclared the weight by 2342.55 gram of gold worth crores to bring in illegal remittances.
The SIIB Mumbai arrested Ganpatlal Madrecha, the director of Pragati Gold private limited under the provisions of the Customs act.
Ganpatlal has been arrested for attempting to export gold ornaments through cargo by misdeclaring the weight of the gold.
The officials have found that the firm had misdeclared the weight by 2342.55gram of gold worth crores.
According to the officials Pragati gold was exporting gold jewellery under the Foreign Trade Procedure wide shipping bill dated June 30 wherein goods were declared as gold jewellery studded with diamonds, cubic zirconia and synthetic pearls and Free on Board (FOB) value of Rs 2.38 crores and destined to consignee -Vivaa Jewellery Dubai.
The officials examined the goods on July 4 and upon 100 per cent examination of the goods at PCCCC, total gold content was found to be 2887.53gram and there was a difference of 2342.55gram of gold.
The aforesaid gold being exported was purchased under “Outright purchase as per Exim Scheme”.
In order to boost exports, the government of India under advance authorisation scheme, allows the import of gold duty-free against the export of gold ornaments.
Officials said the modus operandi was to bring in illegal remittances by showing exported gold jewellery.
Officials conducted searches of firms having Import Export Code (IEC) at Dagina Bazaar in South Mumbai and its manufacturing unit in Malad.
During questioning, Ganpatlal accepted that there was a shortage of gold contents of 2343.55gram in the aforesaid shipment.
He did not cooperate with the investigations and gave evasive replies and also deleted his WhatsApp communications with others.