A major hawala and money laundering racket involving more than ₹2,000 crore has been uncovered in the Surat Special Economic Zone (SEZ) by the Vapi unit of the Directorate of Revenue Intelligence (DRI).
The DRI arrested Montu Harshadbhai Gandhi, a resident of Navsari, for allegedly importing low-quality diamonds and falsely inflating their value in export documents before re-exporting them. Officials said the overvaluation was allegedly carried out to claim government incentives and benefits available under the Make-in-India initiative and SEZ schemes.
According to investigators, the accused inflated the value of imported diamonds by nearly 50 times while preparing export paperwork. Authorities said the alleged fraud violated provisions of the Customs Act, 1962 and the SEZ Act, 2005.
During the investigation, DRI officials found that Gandhi allegedly operated several firms through dummy partners. One of the partners reportedly told investigators that he was only a nominal partner on paper, while all key business dealings, financial transactions and overseas buyer connections were controlled by Gandhi.
Officials seized digital evidence and important documents during the probe, which reportedly indicated that the total value of the scam could exceed ₹2,000 crore. Investigators suspect similar fraudulent activities may have been carried out for several years through multiple companies.
The accused was produced before a Surat court, which granted the DRI three days’ remand for further questioning.
Officials are now examining whether other jewellers and additional firms linked to the Surat SEZ were involved in similar operations. Authorities said the accused allegedly misused government schemes intended to promote exports and support genuine businesses operating in Special Economic Zones.
By declaring inflated export values, the firms allegedly attempted to obtain illegal financial benefits and evade customs duties.
The DRI is currently scrutinising bank accounts, export records and overseas financial transactions connected to several companies functioning in the Surat SEZ area. Officials indicated that further arrests and a wider probe are likely as investigators continue tracing the money trail.
The case has reportedly created concern among jewellers operating in the Surat SEZ.