In 2016, Nirav paid Rs 48 crore in duty, penalty for smuggling

MUMBAI: Nirav Modi had to pay Rs 48 crore in 2016 towards duty and penalty for smuggling. In December 2014, DRI had intercepted eight export consignments by Firestar Diamond International and Firestar International at the air cargo complex at

Sahar

in Mumbai. Both firms, with Modi as chairman, are SEZ units in Surat and the exports were meant for countries including the US, Canada and

Hong Kong

.

DRI found that the value and description of goods were under-declared in six of the consignments. 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.

DRI estimated that the value of the stock declared was less by Rs 1,000 crore, and the duty-free diamonds had been diverted into the market. After detailed investigation, it was revealed that the Firestar units, along with another Modi firm

Radashir Jewellery Company

, had substituted the imported diamonds with low quality cheaper ones.

Two separate showcause notices were issued against the firms. Following adjudication, in 2016, the firms paid Rs 48.2 crore, including penalty of Rs 5.6 crore. DRI has gone on appeal in the customs, excise and service tax appellate tribunal, saying another fine has to be imposed on the firms.