Trading scam: DRI seizes Rs 70-cr gold

Officials of the Directorate of Revenue Intelligence (DRI), Delhi zone, have uncovered a huge scam at the Noida special economic zone (SEZ), wherein a bullion-trading company was found to be importing jewellery in alleged violation of government norms.

Officials of the Directorate of Revenue Intelligence (DRI), Delhi zone, have uncovered a huge scam at the Noida special economic zone (SEZ), wherein a bullion-trading company was found to be importing jewellery in alleged violation of government norms.

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The DRI reportedly seized jewellery worth Rs 70 crore, in the form of gold bangles, from Kundan Rice Mills Limited.

According to officials, the company was allowed to trade only in gold and silver (involving importing the product from one country and exporting to another) in November last year. However, it had been allegedly importing jewellery without the approval of SEZ authorities, they added.

“The suspect company had traded in gold and silver to the tune of R4,000 crore ever since it received permission about five months back. Considering that the DRI had slapped a case against this company on an earlier occasion too, it is surprising how it received permission to trade in gold and silver. SEZ regulations clearly state that a company is bound to disclose past cases at the time of seeking permission,” said an official.

“We suspect that many other units are also indulging in such practices. These companies are trading in gold and silver to acquire certain benefits, including increase in turnover for getting more bank loans, ‘star trading house’ status, and exemption from tax,” he added.

DRI (Delhi zone) additional director general RK Sharma said: “We are investigating the case from the money-laundering angle as well.”

Sources said trading of this kind is skewing the country’s current account fiscal deficit, and causing imports to take a lead over exports.