Nirav Modi had to pay a fine of Rs 48 crore in 2016 toward duty and penalty for smuggling. In December 2014, Directorate of Revenue Intelligence (DRI) had intercepted eight export consignments by Firestar Diamond International and Firestar International at the Air cargo complex at Sahar in Mumbai, reports The Times of India.
Nirav Modi was the chairman of both the companies and the SEZs were in Surat. The exports were meant for countries like US, Canada, Hong Kong, etc.
What did they find?
DRI found that the assets in six of the eight boxes were under-declared. The cut and polished diamonds, which were imported duty-free and declared as studded in the jewellery being exported, were not found on the pieces.
The estimate that DRI had was that Rs 1000 crore was under-declared. The duty-free diamonds were also diverted into the market. After a detailed investigation, it was found that Firestar units, along with another Modi firm Radashir Jewellery Company, had substituted the imported diamonds with low quality cheaper ones.
After two different show cause notices, in 2016 the firms paid Rs 48.2 crore, including a penalty of Rs 5.6 crore.
Nirav Modi is currently under investigation for a Rs 11,360 financial scam.
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