Mumbai Crime DRI Arrests 2 Passengers For Allegedly Smuggling Diamonds Worth 570 Crore To Bangkok At

The Directorate of Revenue Intelligence (DRI) in Mumbai has uncovered a major diamond smuggling operation, arresting two passengers allegedly involved in transporting ₹570 crore worth of undeclared diamonds to Bangkok. The interception occurred at Chhatrapati Shivaji Maharaj International Airport, thwarting a significant attempt to evade customs duties and taxes. Preliminary investigations suggest a sophisticated network operating across multiple locations, potentially involving shell companies to launder proceeds. The DRI is now tracing the origin of the diamonds and their intended use in Bangkok, with potential implications for GST evasion on domestic sales had the smuggling been successful. Authorities are examining passenger manifests and cargo records to identify other potential accomplices and similar smuggling attempts. Further investigation may involve provisional attachment of properties under Section 83 of the CGST Act to recover potential tax liabilities.

Section 135 of the Customs Act, 1962, penalizes the fraudulent evasion of customs duties or prohibitions on imported or exported goods. Smuggling diamonds to evade customs duty attracts penalties, including confiscation of goods and imposition of fines, and potential prosecution. The burden of proof lies on the person from whose possession the goods are seized to establish that the goods were not smuggled.

Such incidents underscore the need for enhanced due diligence and internal controls within the gems and jewelry sector. The DRI's focus on high-value smuggling suggests a broader strategy to curb tax evasion through illicit trade, potentially leading to increased scrutiny of export-oriented units and Special Economic Zones.

This bust highlights the ongoing challenges in preventing high-value smuggling and its potential impact on legitimate trade and tax revenues.