Directorate of Revenue Intelligence busts Rs 2,000-crore racket involving overvalued diamonds

The Directorate of Revenue Intelligence (DRI) has detected a major case of illegal money laundering to overseas destinations by over-invoicing imports of rough diamonds.

The DRI had received a tip-off that 14 consignments of very low quality rough diamonds were being imported at Bharat Diamond Bourse (BDB) with a declared value of Rs 156 crore, which was subsequently accepted by a panel of expert valuers.

A team of officers from DRI intercepted 14 consignments and upon re-valuation ascertained that these rough diamonds were of inferior quality and actually worth only about Rs 1.2 crore.

"The modus operandi," a DRI officer explained, "was to import rough diamonds of inferior quality from destinations such as Hong Kong and Dubai in connivance with exporters in these countries. They were procured at grossly overvalued prices, and upon arrival in BDB, the accused, with the assistance of some members of the valuers' panel has the consignments declared to be of fair value."

In the apprehended case, the overvaluation is to the tune of more than Rs 150 crore. DRI tracked past consignments based on which it appears that about Rs 2,000 crore has been illegally laundered to overseas destinations such as Hong Kong and Dubai.

"Four persons have been arrested," an officer said. "Cash amounting to Rs 10 lakh and demand drafts amounting to Rs 2.2 crore have been recovered. DRI also found an abnormally huge cache of cheque books, Aadhaar cards and PAN cards at the premises of one of the people involved."