UK-based NRI duped in Dubai for Rs 35 million
A jewel merchant has been held in New Delhi for duping Shashikant Mittal.india Updated: Mar 12, 2007 17:56 IST
A jewel merchant and his chartered accountant (CA) were arrested in New Delhi for allegedly duping a London-based NRI of Rs 35 million in Dubai, police said Monday.
Keval Garg and his CA Gautam Verma were held last week from south Delhi's Greater Kailash for allegedly duping jewel merchant Shashikant Mittal.
Mittal told the Economic Offences Wing (EOW) of the Delhi Police that Garg had approached him in London in 2002 for setting up a joint jewellery merchandise business in Dubai.
Garg told him they could save a handsome amount of money in taxes if they did business from Dubai, as the gulf city did not charge customs duty. Also, they could escape taxes in India setting up an office in the special economic zone in Noida, Uttar Pradesh.
The two subsequently set up offices in Dubai and Noida under the name of Cornish Jewellers in 2003, police said.
Mittal named Garg joint director and handed him the reins of the Dubai office, from where he sold 43 kg of gold in Dubai's open market for Rs.35 million. Garg then transferred the money to India and in February 2006 fled with his accomplice.
Acting on Mittal's complaint, a red corner notice was issued against them by Dubai Police and they were arrested in Delhi, police said.
"We have seized all the accounts of the accused and further interrogation is underway," Deputy Commissioner of Police (EOW) Prabhakar said.