Arrest warrant issued against Nirav Modi in DRI case

A Surat court has issued an arrest warrant against fugitive Nirav Modi in connection with a Customs Duty evasion case registered by the Directorate of Revenue Intelligence (DRI).

The agency has found that Mr. Nirav Modi’s three companies — Firestar International, Firestar Diamond International and Radashir Jewellery — allegedly indulged in diversion of duty free imported goods, Cut-and-Polished Diamonds (CPDs) and pearls.

The total diversion of duty free goods was found to be ₹1,205 crore, while the recoverable Customs Duty with interest and penalty components stands at ₹48.21 crore.

The DRI launched prosecution in the case against Mr. Modi in March, based on the findings of its investigation into interception of six consignments at Mumbai airport in December 2014.

The consignments, destined to Hong Kong and Dubai, were found to be “grossly” mis-declared in terms of quality, quantity and value, mainly that of CPDs.

The Freight on Board value of diamonds was declared as ₹43.10 crore. However, it was only ₹4.93 crore as later determined by government approved assessor.

Units of the three companies were located in the Surat SEZ.

After completing investigations, the agency has launched prosecution against Mr. Nirav Modi and his three companies.

The Surat court issued summons, but no one appeared on the scheduled dates of hearing. Accordingly, the court issued an arrest warrant against him.

In February, the DRI had registered another case of alleged diversion of duty free imported goods and overvaluation of import/exports against the Nirav Modi Group of companies.

“It has been noticed from the documents available that the goods worth ₹890 crore, involving Customs Duty of ₹52 crore, appears to have been diverted by the SEZ units controlled by him. The case is under investigation and vital details, documents and evidence have been collected,” said the agency.