Customs Department pleas for arrest warrant in SEZ gold smuggling case

NEW DELHI (Scrap Monster): The Indian Customs Department has decided to move court to issue arrest warrant against the first accused in the case related to smuggling of gold out of Special Economic Zone (SEZ) to jewellery shops. Further, it has decided to request the court to declare him absconding.

According to the investigation team, the first accused in the case, Sanjay Subba Rao Nigam, Managing Director, Ashwini Gold has failed to appear before the court on three occasions in response to summons issued to him by the court. Furthermore, all efforts by the Customs Department to get in touch with the accused have also been in vain.

Earlier in August this year, Customs officials had seized illegal shipment of gold from a jewellery making unit inside Special Economic Zone (SEZ). The gold was seized while it was being transported out of the SEZ to be sold to local jewellers. As per norms, gold imported by SEZ entities are purely meant for value-addition and re-export and are not permitted to be sold in local market.

According to sources, the gold weighing 22 kilograms was imported by SEZ-based Ashwini Gold. The company had imported the gold duty free for the purpose of jewellery-making and re-export. However, it tried to sell the gold to domestic market for jewelry-making, in violation of SEZ norms.

The Customs Department had arrested Sanjay and other three people in connection with the incident. Sanjay was later released on bail upon the condition that he should appear before the court whenever required by the investigation agency.