PNB fraud: Gitanjali was known for its dabba' exports

Hyderabad: The possibility of illegal gems trade or as ‘dabba’ trading (non-existent trade), which was outside the purview of the authorities, could happen from SEZ in TS, according to experts. While some of the trade would remain only on paper, some would take the round-shipping route to enjoy pre-shipment benefits. The Mehul Choksi fraud brought to focus the issue of trade in gems and jewellery. 

On enquiries by the Deccan Chronicle, officials said that the Customs had the mechanism to check on the quality of gold, through Carat-o-meter. Any piece of gold placed under this meter will be identified by its carat value. But In case of diamonds, there was no mechanism. 

“Diamonds being exported have no quality check, no device to check if it is flawless,  SI1 or lower grades or  VVS diamonds (known to be one of the highest grades in terms of clarity), especially when it comes to smaller diamonds. Also, it is very difficult for the customs to assess every piece. Exports go through random checks. No quality of diamonds is assessed.” 

It is alleged that Mehul Choksi carried out  ‘dabba’ export, only on paper, as the trader had to fulfil the export credit norms. 

A trader explained, “It is humanly impossible to check every box, thus it goes unchecked. The product is exported through air cargo; the exports from the SEZ based in Telangana has been over a decade now. The Rajiv Gems Park has its own special packing facility at the site.” 

Hyderabad Gems SEZ (called Rajiv Gem Park) is a 100 per cent subsidiary of Mehul Choksi-owned Gitanjali Group and maternal uncle of Nirav Modi, the duo booked by the Central Bureau of Investigation. 

ED conducted searches and seized diamonds, precious stones, gold and have deposited in in 14 SEZ company lockers within the premises. The total worth of the gems seized was yet to be evaluated, said regional ED officials. The SEZ was located in Ravirala village in Maheshwaram in Ranga Reddy district.