As per the guidelines of CBEC, Union Ministry of Finance on prosecution of persons in duty evasion cases, DGRI has sanctioned prosecution for Nirav Modi and his three firms for their acts of misdeclaration of value and quantity of the imported Cut and Polished Diamonds, Pearls, etc to Customs this rendering such goods liable to confiscation.
Diversion of the Duty Exempted goods to the domestic tariff area clandestinely
Falsification of documentation and submission of such documents to Customs.
Violation of the rules of “authorised operations” of SEZ
Causing loss of Customs Duty to the government by their acts, Nirav Modi, Ms Firestar Diamond International, Ms Firestar International Pvt Limited, and Ms Radhashir Jewellery Company Limited have been found to be fit to be prosecuted under Sections 132, 135(1)(a), 135(1)(b), 135(1)(i) of Customs Act, 1962 and Section 120-B of IPC, 1860.
If convicted, the quantum of punishment as per Section 135(i)(D) of the Customs Act, 1962 is upto 7 years imprisonment.
The draft complaint alongwith all relied upon documents have been forwarded to the jurisdictional Commissionerate in Surat for filing in the appropriate court of law. Trial is expected to be launched shortly.
Duty evasion is Rs 40 crores and hawala involved is 1160 crores