DRI Busts ₹2,000 Crore Surat SEZ Diamond Hawala Scam

Vapi | Gujarat — A massive ₹2,000 crore hawala and export fraud racket operating from Surat’s Special Economic Zone (SEZ) has been busted by the Directorate of Revenue Intelligence (DRI), sending shockwaves through India’s diamond trading industry. The case exposes a sophisticated network that allegedly manipulated import-export rules to siphon off huge government incentives.

Officials described the operation as one of the largest diamond export frauds uncovered in recent years.

“This is a well-organised economic crime involving misuse of SEZ benefits and customs regulations,” a DRI official said.

Mastermind Arrested After Long Investigation

The DRI’s Vapi unit arrested Montu Harshadbhai Gandhi, a resident of Navsari, who is believed to be the key mastermind behind the scam. He was produced in a Surat court and remanded to three days of custody for further interrogation.

Investigators say Gandhi orchestrated the scheme by importing low-quality diamonds and falsely declaring them at values up to 50 times higher on export documents.

“The intention was to obtain government subsidies and financial benefits by artificially inflating export value,” an official involved in the probe said.

Dummy Partners Used to Run Firms

According to DRI findings, the accused used “dummy partners” to operate multiple firms within the Surat SEZ. One such partner admitted during questioning that he was merely a name partner while Gandhi handled all financial transactions and foreign dealings.

Digital evidence seized during the raid indicates the scam may extend beyond ₹2,000 crore, with past transactions of other firms now under scrutiny.

“Previous deals linked to the accused are being examined. The investigation is expanding,” an officer confirmed.

Misuse of Make in India and SEZ Incentives

The racket allegedly exploited provisions under the Customs Act, 1962 and the SEZ Act, 2005. By showing inflated export values, the firms attempted to claim subsidies, tax benefits and incentives meant to boost genuine exports.

Officials say the fraud undermined government schemes designed to promote manufacturing and exports under the Make in India initiative.

“This case highlights serious misuse of government incentives and financial systems,” a senior officer said.

Industry on Alert

The arrest has triggered anxiety among traders in Surat’s diamond ecosystem, with authorities hinting that more investigations could follow.

“This breakthrough could expose older scams as well,” a DRI source added.

The case is expected to widen as authorities examine financial trails, foreign transactions and associated firms linked to the accused.