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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Nirav diverted SEZ diamonds worth Rs 1,216 crore to domestic market

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NEW DELHI: The Income Tax department has found that in the last financial year the Nirav Modi group had illegally diverted Rs 1,216 crore of diamonds meant for export from its special economic zone to the domestic market, selling them in cash.


The Director-General of Income Tax (Investigations) had found that in 2016-17, the group which had units at the Surat SEZ diverted high quality diamonds imported for processing and export, to the domestic market for huge profit. Instead, low-quality diamonds were exported to associate units abroad to keep up the appearances.


The DGIT (Inv) also found in its probe that the group had claimed deduction on 100 per cent of the profits from exporting diamond as allowed under section 10AA of the Income Tax Act for the SEZ.


It had claimed deductions to “the tune of hundreds of crores in last six years,” the report said. “The assessee has not been able to explain the reason for the drastic difference in valuation satisfactorily,” the investigative wing of the Central Board of Direct Tax said in its report. — IANS


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