Customs attaches properties of Bharat Shah and others to recover Rs 35 crore duty

MUMBAI: The Mumbai Customs has attached the properties of diamond merchant and film financier Bharat Shah and his partner Suken Mehta to recover around Rs35 crore as duty, penalty, fine and interest in a case of duty evasion related to fake import and export of diamonds. Shah’s house in south Mumbai and a factory in SEEPZ in the northern suburb of Andheri have been attached.


The customs department had imposed duty and fine in 2000 against Shah and Mehta’s partnership firm BV Jewels. The department alleged that the company had violated the import-export policy by selling imported diamond in a local market, which was meant for export after value addition. According to the order, during the search operations, the department fell 7,370 carats short after comparing the import and export book.

They also found 23 high-value diamonds worth Rs36 lakh without any document to justify their import. The diamond merchants then challenged the customs department’s order in Customs Excise Service Tax Appellate Tribunal Mumbai, where the tribunal disposed of the department’s plea.

The apex court then sent the case back to the tribunal observing that reconciliation has to be done based on value, and the tribunal favoured the custom department and imposed the penalty.

However, Shah and Mehta then challenged the order in the Bombay High Court and subsequently in the apex court, where the court said the duo will have to cough up Rs35 crore.

“This order will have huge implications on the entire import-export businesses,” says Advait Sethna, counsel for the custom department. “Wherever there’s a scheme related to import-export, the merchants will have to make sure that they follow it in letter and spirit.”