The DRI carried out several searches and had intercepted various people involved in the case between May 3 to 5, officials said. The DRI carried out several searches and had intercepted various people involved in the case between May 3 to 5, officials said. The Hyderabad unit of the Directorate of Revenue Intelligence (DRI) has arrested four jewelers for allegedly diverting 1,100 kg gold into the local market instead of exporting it from the gems and jewellery special economic zone (SEZ), in Ravirala village near Shamshabad. Sources said Sri Krishna Jewellers Group, which had taken an SEZ licence to import gold to manufacture gold jewellery and export it, was found allegedly diverting jewellery made from gold for local markets. The four arrested are owners and partners of the group, officials said. “The unit was kept under surveillance and it was found indulging in fraudulent export and diversion of SEZ gold into the local market,” an official said. “As per preliminary estimates, the unit has diverted over 1,100 kg gold. Four people have been arrested so far, and further investigation is in progress.” The DRI carried out several searches and had intercepted various people involved in the case between May 3 to 5, officials said. The DRI team learnt that the unit has been “misdeclaring” export consignment as gold jewellery studded with semi-precious stones. An examination of the export consignment revealed that it was not gold jewellery but “crudely made jewellery” of stones with traces of gold in them. In the export consignment, the total weight of gold was declared at 19 kg and that of semi-precious stones at 2 kg, officials said. However, an examination revealed that only 565 grams of gold was used in the export consignment and the rest of the 20.85 kg weight was of stones. While value of the export consignment was declared at Rs 5.45 crore, it was found that it is actually worth Rs 22.16 lakh. The fraudulent export consignment was seized, officials said. Gold generated from this was diverted and sold in the local market, according to officials. Around 10 kg foreign-marked gold, which was diverted to the local market and sent for delivery, was intercepted and seized, officials said. Major discrepancies were also found in the stock held at the SEZ unit and at another unit of the same group at Hyderabad’s Banjara Hills.<doc-sep>The officials of Directorate of Revenue Intelligence (DRI) are quizzing the Srikrishna Jewellers MD Pradeep Kumar and his son Sai Charan since morning of Tuesday. According to sources, after doing searches in his offices and residences at various places in Hyderabad and in several cities , the officials seized several key documents and hard discs. Earlier the officials arrested both of them on the allegations of buying the gold illegally from foreign countries and evaded the taxes. According to reports he is doing gold business by establishing 35 companies across India.<doc-sep>By Express News Service HYDERABAD: Four persons, including the managing director of Sri Krishna Jewellers, Pradeep Kumar, have been arrested by the Directorate of Revenue Intelligence (DRI) for diversion of more than 1,100 kg of gold, worth more than Rs 330 crore, into the local market, in violation of licence agreements. The violations were detected at the firm’s unit in the Raviryal SEZ, on the outskirts of Hyderabad. By diverting the gold, the jeweller was saving 13 per cent on customs duty. As much as 21 kg of foreign-market SEZ gold, 6.8 kg of gold jewellery, 491 kg of semi-precious material, and other items, worth Rs 14.87 crore, were seized. The jeweller had an SEZ license only to import gold to make jewellery and to export the same to foreign destinations. In a series of searches, the DRI learned that the jeweller was declaring an export consignment as gold jewellery studded with semi-precious stones. However, it found that the consignment had crudely-made jewellery with just traces of gold. The consignment, which the jeweller claimed had 19 kg of gold and 2 kg of semi-precious stones, actually had just 565 g of gold and 20.85 kg of stones. The declared value of the export consignment was Rs 5.45 crore, but it was worth just Rs 22.16 lakh. The consignment has been seized for inquiries. DRI officials found that the remaining gold, which was to be part of the consignment, was being diverted and sold in the local market. Discrepancies were also found in the stock held at the SEZ unit and a unit in Banjara Hills.<doc-sep>HYDERABAD: Directorate of Revenue Intelligence (DRI) sleuths have arrested vice-chairman and managing director of Sri Krishna Jewellers group, Ravi Kumar, in connection with allegations of customs Act violation over gold trade. Pradeep Kumar (55) was sent to judicial remand at Chanchalguda jail on Sunday after he was produced before the special judge for economic offences court in Nampally.Sources said that DRI continued searches regarding the case on Monday, too, and the agency has so far arrested three persons including Pradeep Kumar in the case.In the judicial remand report, it was alleged that charges against Pradeep Kumar, son of Shiva Charan, a resident of Banjara Hills, are punishable under Section 135 of the Customs Act. The case is under investigation by Directorate of Revenue Intelligence Hyderabad.The court has ordered the judicial remand from May 5 to May 17. He was asked to be produced in the court again on May 17 at 10.30 am.When contacted by TOI, Chanchalguda jail superintendent, K Arjun Rao, said: "So far, three persons were arrested in the case and sent to judicial remand. Apart from Pradeep Kumar, his security officer and another, his employee, were arrested. "According to the registrar of companies records, Pradeep Kumar is director of six companies that are into jewellery as well as construction business.Section 135 of Customs Act, under which the accused were arrested, deals with duty evasion or prohibition of certain activities about exports and availing tax benefits. Repeated attempts to contact the Sri Krishna group officials went in vain. A source close to Sri Krishna Group, who did not want to be quoted, told TOI: "The case is not related to Sri Krishna Jewellers but to one of the other group companies." He said, "Competitors in the business may have been behind the implication of Pradeep Kumar in the case."<doc-sep>
Hyderabad: The officials of Directorate of Revenue Intelligence (DRI) busted a SEZ fraud and detected diversion of more than 1,100 kg of gold by a jewellery company. The officials arrested four persons so far including Pradeep Kumar, vice-chairman and MD of Sri Krishna Jewellers Group, on the allegations of the Customs Act violation and his security officer and an employee of his firm. According to Additional Director General of DRI, Hyderabad zonal unit, based on specific intelligence, their officers mounted surveillance on a Special Economic Zone (SEZ) unit situated in Gems and Jewellery SEZ at Ravirala village in Shamshabad and found that the company was indulging in fraudulent export of gold jewellry and diversion of SEZ gold into the local market. The said unit had taken SEZ licence for import of gold for manufacturing of jewellery and exporting the same to foreign destinations. DRI officials carried out serial searches and intercepted various persons involved for three days from May 3 to May 5, which revealed that the unit mis-declared the export consignment as gold jewellery studded with semi-precious stones. On actual examination of the export consignment, it was found that it was not gold jewellery but crudely-made jewellery of stones with traces of gold in it. In the said export consignment, the total weight of gold was declared as 19 kg and that of semi precious stones as 2 kg. However, on examination it was revealed that only 565 grams of gold was used in that export consignment and the rest of 20.85 kg weight was of stones. They declared the value of the export consignment as Rs. 5.45 crore and it was found that it was actually worth only Rs. 22.16 lakh. The fraudulent export consignment was seized. The gold generated out of this modus operandi is being deceitfully diverted and sold in the local market. As much as 10 kg of foreign-marked gold of SEZ which was diverted to the local market and sent for delivery was intercepted and seized by the officials. Major discrepancies were also found in the stock held at the SEZ unit and at another unit of the same group at Banjara Hills. The misdeclared stock, which includes 21 kg of foreign-marked SEZ gold, 6.8 kg of gold jewellery, 491 kg of semi- precious stones and other material involved in this fraud. Further investigation is on.