When gold vanishes into ball bearings

NEW DELHI: When the gold was recast and transformed into scrap ball bearings!

This case, a unique one, was unearthed by the Directorate of Revenue Intelligence (DRI) when some Special Economic Zone units in Noida were found bringing in latest gold jewellery instead of old gold from Dubai that they were licensed for.

To get around the licence clause under which they had to export the old jewellery after polishing and value-addition, what the units sent back was nothing but junk in the form of metal ball-bearings and other materials.

The DRI seized a whooping 108 kg of gold jewellery from two units in the Noida SEZ, imported allegedly by hoodwinking the laid-down laws, bringing many top jewellers under the agency scanner.

It has also detained a cargo of 68 kg gold jewellery and recovered 200 kg of ball bearings and other metal scraps that were declared as export of value-added gold jewellery.

This case, whereby the SEZ units were misusing the facilities extended to them by the government, has raised the eyebrows of Customs officials, who fear more such scams waiting to happen.