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DRI arrests gold trader for evading customs duty of Rs 27.5 crore
A gold trader was arrested by the Directorate of Revenue Intelligence (DRI) on Thursday for allegedly diverting 560 kg of imported gold worth Rs 174 crore to domestic
A gold trader was arrested by the Directorate of Revenue Intelligence (DRI) on Thursday for allegedly diverting 560 kg of imported gold worth Rs 174 crore to domestic market, without informing the customs department and causing revenue loss of Rs 27.5 crore.
The accused was identified as Ketan Shroff, director of Penta Gold Limited.
According to DRI sources, the agency had specific inputs that the gold trader had misused the advanced authorisation scheme provided under Foreign Trade Policy. Under the scheme, the input import is allowed to be made duty-free, after making normal allowance for wastage, if they are physically incorporated in a product which is going to be exported. An export obligation is usually set as a condition for issuing advance authorization.
On scrutinizing company’s records, DRI officials learnt about gross irregularities related to conditions under the advance authorization scheme.
Following this, searches were conducted at the company’s office in Champa Gully, Zaveri bazar and also on the factory of the company in Sewree on Wednesday. About 7.6 kg gold was found at the office while no gold was found in the factory, a DRI official said.
According to DRI sources, Shroff has stated that he has already diverted 530 kg duty-free imported gold bars worth Rs 174 crore.
Shroff allegedly diverted the gold to domestic market without informing the Director General of Foreign Trade (DGFT) or customs and evaded paying Rs 27.5crore in customs duty under the advance authorization scheme “Shroff was arrested for dubious and illegal conduct and indulgence in the illegal sale of duty-free imported gold worth Rs 174 crore and knowingly evading duty worth Rs 27.5 crore. He has been charged under relevant sections of Customs Act,” said another DRI official.
A city court on Thursday sent him into judicial custody up to March 11.
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