Diamond Scam Order 2013.pdf

•
••••---•
• ..•
CT'. 3.-
. 1
•
OFFICE OF THE COMMISSIONER OF CUSTOMS, ,
CHHATRAPATI SHIVAJI INTERNATIONAL AIRPORT, f
AVAS CORPORATE POINT, MAKWANA LAN&._2_
ANDHERI KURLA ROAD, ANDHERI (EAST)
MUMBAI - 400 059
F. No. S/14-7-05/2007-08 Adin
ORDER NO. COMMR/PMS/ADJN/13/2012-13
DRI/ AZWINQ-15/ 2005
.
DATE OF ORDER • 14.01.2013
/ t DATE OF DESPATCH : 21.01 2013
ORDER-IN-ORIGINAL
PASSED BY SHRI P. M. SALEEM, COMMISSIONER OF CUSTOMS,
CHHATRAPATI SHIVAJI INTERNATIONAL AIRPORT, MUMBAI.
A. This copy is granted free of charge for the use of the person to whom it is
issued.
B. An appeal against this order lies with the Regional Bench, Customs,
Central Excise 86 Service Tax Appellate Tribunal, Jai Centre, 34, P.
D'MelIo Road, Poona Street, Masjid Bunder (E), Mumbai - 400 009.
C. The appeal is required to be filed within 3 months and as provided in
Rule 6 of the Customs (Appeals) Rules, 1982, in form C.A. 3 appended to
those rules. The appeal should be in quadruplicate and shall be
accompanied by:
Four copies of the order appealed against (at least one of which
should be a certified copy).
(ii) A crossed Bank Draft in favour of the Assistant Registrar of the
Bench of the Tribunal on a branch of any Nationalized Bank
located at a place where the Bench is situated, for an amount
equal to the fee required to be paid under the provisions of Section
129A of the Customs Act, 1962, for the appeal.
D. The appeal shall be presented in person to the Registrar of the Bench or
an Officer authorised in this behalf by him or sent by registered post
addressed to Registrar or such Officer.
E. Any person desirous of appealing against this decision or order shall
pending the appeal deposit the duty demanded or the penalty levied
.
1
4:7
71
0, therein and produce proof of such payment along with the appeal failing
1.0
which the appeal is liable to be rejected for non-compliance with the
provisions of Section 129 of the Customs Act, 1962.
, • !
***********
Sub: Show Cause Notice against M/s Adani Exports Ltd., now Adani
Enterprises Ltd., Ahmedabad and five other Noticees for
misdeclaration of FOB Value of -Cut and Polished Diamonds
exported by them during 2004-05 and 2005-06 - Reg.
(i)

2
•
The matter under adjudication here is the Show Cause Notice
No.DRI/AZU/INQ-15/2005 dated 30.03.2007 issued by Addl. Director General,
Directorate of Revenue Intelligence, Ahmedabad. The said Show Cause Notice,
narrates the background of the issue, the details of the investigations, the allegations,
and the charges as stated briefly as follows :
1.1.1 Intelligence was received by the Directorate of Revenue Intelligence that M/s.
Adam Exports Ltd., Ahmedabad - now Adani Enterprises Limited - (hereinafter
referred to as AEL) had formed a consortium with various companies and indulged in
the mis-declaration of FOB value and circular trading of Cut and Polished Diamonds
(hereinafter referred to as CPD) exported by them with an intent to inflate their export
turnover to fraudulently avail the benefit of Target Plus scheme.
The investigation was carried out by DRI, Ahmedabad. Various aspects were
studied/examined and investigated. The details of Import/ export of CPD into/from
India were analysed which revealed that there was a perceptible spurt in import of cut
and polished diamonds from Dubai and Hong Kong and exports to Singapore, Hong
Kong and UAE after announcement of the Target Plus Scheme.
It was noticed that the total imports of cut and polished diamonds from India
which was only to the tune of Rs. 2155.15 crores in 2002-03 suddenly increased by
over 105% to Rs. 4417.10 crores in 2003-04. The statistics indicated that the majority
of this rise in imports was attributed to the rise in imports from Hong Kong and
U.A.E;., which also rose by 120% and 135% respectively. Further, out of total imports
of Rs. 4417.10 crores in 2003-04, the total imports from Hong Kong and U.A.E.
accounted for Rs. 2932.76 crores i.e. more than 66%. It was stated by the DRI that
this sudden spurt in the imports of cut & polished diamonds was due to the advent of
"Incremental Export Promotion Scheme" in 2003-04. That on introduction of "Target
Plus Scheme" in 2004-05 the spurt in the imports of diamonds got a further boost in
2004 -05 and 2005-06 and the total imports rose by 339.54% and 328.66% in 2004-05
and 2005-06 as compared to 2002-03. The share of U.A.E. in this unprecedented rise
of imports rose by 1240.68% and 968.23% in 2004-05 and 2005-06, respectively over
its imports of 2002-03. It was also observed that of the total imports of Rs. 11514.46
crores in 2004-05 the share of imports from Hong Kong and U.A.E. was of Rs. 9676.98
crores i.e. more than 84%. Similarly in 2005-06 out of total imports of Rs. 11162.38
crores the total imports from Hong Kong and U.A.E. was Rs. 9465.18 crores i.e. again
more than 84%. Such exponential growth in the imports of cut 86 polished diamonds
into India and that to from only two countries was never seen in the past.
1.1.2 Similar trends were also observed in the exports of CPD, the details of exports
examined which indicated sudden spurt in exports to Hong Kong, U.A.E. 86 Singapore
in 2004-05 and 2005-06 after the introduction of "Target Plus Scheme". It was
observed that out of total exports of Rs. 45357.56 crores in 2004-05 the total exports
to Hong Kong, U.A.E. and Singapore accounted for Rs. 20380.51 crores i.e. more than
45%. Similarly in 2005-06 out of total exports of Rs. 49140.43 crores the total exports
to Hong Kong, U.A.E. and Singapore was Rs. 23382.40 crores i.e. more than 47%. The
share of Singapore in this unprecedented rise of exports rose by 126.57% and
734.11% in 2004-05 and 2005-06, respectively over exports of 2002-03.
1.1.3 The trends of major importers/exporters of CPD from Diamond Plaza Clearance
Centre (DPCC) Mumbai were studied. It was revealed that in case of all other
importers of the same goods, further analysis of the import / exports of CPD, volume
n different periods, value additions, common suppliers and consignees etc. during the
same years indicated that most of the parties who had been consistently importing
and exporting diamonds over the years had not seen any major increase in their
‘:.xpoits of diamonds in terms of value and quantity, the details of which were given
Annexure N to the Show Cause Notice. A study of 40 major CPD importers and
exporters operating from the bonded premises in the Diamond Plaza Clearance Center
(DPCC), Mumbai was carried out. The details of imports and exports of CPD given by
Assistant Commissioner of Customs, Diamond Plaza Customs Clearance Centre,
Mumbai, revealed that during 2003-04, the import and export of CPD by AEL was
31.39% and 32.55% respectively, of the total import export from the DPCC by the
major 40 importers/exporters. While the other 5 firms viz. HEPL, JAOL, MOL, BBPL
and ACPL did not have any import and export of Diamonds from the DPCC. However,
with the introduction of the Target Plus Scheme, the total imports and exports of AEL
and the above 5 companies shot up to 72.31% -Imports and 72.56% - Exports of the
total import and exports of the 40 firms from the DPCC during 2004-05. Similarly

3
during 2005-06 the total imports of AEL and the other 5 companies was 73.33% and
the export was 73.99% of the total import and exports of the 40 firms from the DPCC
during 2004-05. The details of the imports and exports of the said 40 firms of the
DPCC, were scrutinized and it was noticed that the total imports and exports of the 34
major firms dealing from DPCC was consistent during the period 2003-04 to 2005-06
and in fact their exports in 2005-06 reduced from Rs. 2996.05 Crores in 2004-05 to
Rs. 2266.95 Crores in 2005-06 (fall of about 24%). Whereas the exports of Adani
Exports and its other five group companies which was only Rs. 1248.41 Crores in
2003-04 suddenly shot upto to Rs. 7924.35 Crores in 2004-05 (a boost of 535%).
whereas their exports in 2005-06 marginally reduced to Rs. 6447.10 Crores as
compared to 2004-05, in 2004-05 and in 2005-06 the total exports of Adani Exports
Ltd. and their 5 group companies was about 3 times the total exports of all the other
34 firms put together. Such unprecedent growth in the exports achieved by the Adani
Group of companies was unheard of in the diamond business and even the top 34
exporters who were veterans in the field could not achieve such growth.
1.1.4 The study suggested that the following parties had formed a consortium under
the direct management and control of M/s. Adani Exports Ltd., Ahmedabad and had
attained unprecedented growth in the volume of import and exports of diamonds,
1. M/s Adani Exports Ltd. (hereinafter referred to as AEL)
2. M/s Aditya Corpex Pvt. Ltd. (hereinafter referred to as ACPL)
3. M/s Hinduja Exports Pvt. Ltd. (hereinafter referred to as HEPL)
4. M/s Midex Overseas Ltd. (hereinafter referred to as MOL)
5. M/s Jayant Agro Organics Ltd. (hereinafter referred to as (JAOL)
6. M/s Bagadiya Brothers Pvt Ltd. (hereinafter referred to as (BBPL)
On the basis of the intelligence received and in order to collect the relevant
evidence, simultaneous searches were conducted by the officers of DRI at various
premises at Mumbai, Ahmedabad, Bangalore, Indore and Raipur.
1.2 The business profile and the export turn over of all the six companies were
examined, which revealed the following:
•
1.2.1 M/s. Adani Exports Ltd.(also known as M/s Adani Enterprises Ltd) (M/s AEL):-
It was an Ahmedabad based company with its registered office at Ahmedabad. The
major Directors of this company are the borthers of Adani family viz. Shri Gautam
Adani, Shri Rajesh Adani and Shri Vasant Adani. At that time it had the status of a
Five Star Trading House bestowed by DGFT based on its export turn over. The group
was mainly engaged in the import and export of various commodities as merchant
exporters. The statistics of exports indicated that the exports of M/s. Adani Exports
Ltd. during the year 2002-03 was only Rs. 377.44 crores which shot up to Rs. 4838.53
crores (more than 1200%) in the year 2003-04 when the "Incremental Export
Promotion Scheme" was introduced. This spurt in turn over was mainly achieved
through unprecedented rise in the exports of C&P diamonds, plain jewellery of gold,
rough diamonds and third party exports (all of which were permissible for calculation
of FOB for incremental growth). In the year 2004-05, the turn over shot up to Rs.
10938.80 crores (more than double from the year 2003-04 & more than 2400% as
compared to 2002-03). This again was attributed to unprecedented rise in turn over of
C&P diamonds, articles of gold and studded jewellery of gold (Rs. 8669.80 croi es
.about 80% of total exports). However in 2005-06 the total exports was only 1/3rd of the
previous year and the exports of 03613 diamonds and Articles of gold also considerably
reduced to only 44% of the total exports. It was also noticed that the major exports of
the4e items were affected after September 2004, when the Target Plus Scheme was
' intrpduced. Moreover, the permission for setting up Private/ Public Bonded
Warehouses was obtained by AEL from Customs, under Section 58 of the Customs
Act, 1962 only on 02.07.2003 i.e after introduction of Incremental promotion
scheme.
1.2.2 M/s Jayant Agro Organics Ltd. (M/s JAOL or M/s Jayant Agro): It is a
company owned by the members of Udeshi family and Shri Vithaldas Gokaldas
Udehsi as the chairman of the company. They were having their registered office at
Mumbai. It had 2 units at Ranoli & Vadodara engaged in the manufacture of
derivatives of Castor oiI and dehydrated castor oil, etc. The study et their
export/import revealed that the exports of M/s. Jayant Agro Organics Ltd. suddenly
shot up from Rs. 209.17 crores in 2003-04 to Rs. 538.57 crores in 2004-05 i.e. over
157%. Similarly it had a corresponding increase of over Rs. 191 crores in 2005-06 over

4
•
the previous year and this sudden increase in their exports was mainly attributed to
the sudden increase in the exports of C&P diamonds (about 38% of total exports in
2004-05 and 75% in 2005-06), which was apparently arranged and managed by AEL.
This company was never into the business of diamonds. Moreover, the permission for
setting up Private/ Public Bonded Warehouses was obtained by JAOL from Customs,
under Section 58 of the Customs Act, 1962 only on 07-03-2005, i.e after introduction
of Target Plus scheme.
1.2.3. Xil/s Bagadia Brothers P Ltd (M/s BBPL or M/s Bagadia Brothers): - It is a
Raipur based company owned by Shri Omprakash Bagadia and its family members. It
was mainly engaged in exporting Rice, wheat, Iron ore and De-oiled cakes. The details
of its exports during the period 2001-02 to 2005-06 (upto January 2006) were
analysed which showed that over 100% incremental growth of exports achieved by
Bagadiya brothers in the year 2004-05 over 2003-04 and about 100% growth achieved
in 2005-06 over 2004-05 was mainly attributed to the exports of C&P diamonds
(about 39% and 41% of total exports in 2004-05 and 2005-06, respectively), which
admittedly were arranged for and managed by AEL. This company had never dealt in
diamonds earlier. Moreover, the permission for setting up Private/ Public Bonded
Warehouses was obtained by BBPL from Customs, under Section 58 of the Customs
Act, 1962 only on 15-03-05, i.e after introduction of Target Plus scheme.
1 2.4. M/s Midex Overseas Ltd (M/s MOL Or Midex):- M/s. Midex Overseas Ltd
was Indore based company mainly engaged in the business of export of Molasses,
Soybean Meal and other agro products like Rapeseed meal, Rice, Maize etc. including
certain other sundry items to Africa. The directors of this company were Shri Narottam
Somani and the other directors joined from April, 2005 were Shri Deepak Shah and
Shri Amit Tandon. The details of the export performance of Midex overseas were
studied which revealed that the exports of Midex overseas which was Rs. 244.60
crores in 2003-04 suddenly rose to Rs. 503.05 crores in 2004-05, a spurt of over
100%. Similarly in 2005-06 also their exports had a further boost of over 90% over
2004-05. This sudden increase in their exports was mainly attributed to the sudden
increase in the exports of C&P diamonds (above 78% of total exports in 2004-05 and
87% in 2005-06), which was admittedly arranged for and managed by AEL. This
company was never into the business of diamonds before. Moreover, the permission
for setting up Private/ Public Bonded Warehouses was obtained by MOL from
Customs, under Section 58 of the Customs Act, 1962 only on 28-02-05, i.e after
introduction of Target Plus scheme.
1.2.5. M/s. Hinduja Exports Pvt. Ltd (M/s HEPL or Hinduja Exports).: This
company prior to being incorporated as a company, was a partnership firm owned by
M/s Gokaldas Group in Bangalore. This firm was taken over by M/s. Ambitious Trade
Link Pvt. Ltd., Ahmedabad, a group/associate company of the Adanis, in which the
brother in law of Shri Rajesh Adani, Direcotr of AEL, was the director. Thereafter it
was converted into a limited company and Shri Deven Mehta (Business associate) and
Shri Samir Vora (Brother in law of the director of AEL) were made its directors at the
behest of Shri Rajesh Adani, Director of AEL. The sudden spurt in the exports of this
company in 2004-05 and 2005-06 reveals similar trend as in case of the aforesaid
companies, the exports of M/s HEPL which was meager Rs. 4.15 crores in 2001-02,
jumped to Rs. 694.07 crores in 2002-03 (16,628%), when "Incremental Export
Promotion Scheme" was introduced. This unprecedented growth was mainly achieved
through the exports of rough diamonds, C&P diamonds and third party exports, all of
which were permissible for calculation of FOB for incremental growth. The exports saw
a further boost of more than 100% growth in the year 2004-05 and 2005-06, with the
advent of Target Plus Scheme and this time, in the year 2004-05 more than 95% of the
total exports was of C&P diamonds. And that in the year 2005-06 the entire exports of
Rs. 2258.80 crores of M/s HEPL was of C&P diamonds only. Moreover, the permission
for setting up Private/ Public Bonded Warehouses was obtained by HEPL from
Customs, under Section 58 of the Customs Act, 1962 only on 09-11-2004, i.e after
introduction of Target Plus scheme.
1.2.6 M/s. Aditya Corpex Pvt. Ltd (ACPL or M/s Aditya Corpex): This company was
also .3L partnership firm before being taken over by M/s. Milestones Trade Link ?vt.
Ltd., in which Shri Sameer Vora, brother in law of Shri Gautam Adani, was the
director. Shri Rakesh Shah, brother in law of Shri Rajesh Adani and Shri Saurin
Shah, General Manager (Imports & Exports) of AEL were made its directors. The study
of export performance of this company revealed that the company whose turnover was

•
13
export growth target of balance Rs. 300 Crores approximately, they would he
importing mainly cut and polished diamonds and after value addition to the extent of
5 to 10% they would export the same under the target plus scheme; that he was not
aware whether any kind of machinery or equipment were installed at the Bonded
warehouse in Mumbai but no such purchase of machinery/equipment had been
reflected in the account statements received from their Ahmedabad office; that he was
not aware as to how Cut & Polished diamonds were imported, how the export orders
were procured and how they were exported; that he was also not aware of the manner
in which the payments for the imports were made and how the export remittances
were received; that he was not aware about the foreign suppliers and customer:. of Cut
& Polished Diamonds.
In his further statement of Shri Narottam Somani, Director of M/s.Midex
Overseas Limited inter-alia stated that he had signed various memorandum of
understanding on behalf of the company in the capacity of Managing Director of Midex
Overseas Ltd. which were :
1) MOU dated January 18th January 2005, between M/s Midex Overseas Ltd and
M/s. Aditya Corpex Pvt Ltd - By way of this MOU M/s Midex Overseas Ltd had
permitted to carry out the shortfall of exports during financial year 2004-05, to
achieve 100% incremental growth over the exports of 2003-04. Power of
attorney dt. January 18th 2005 was signed by him in favor of Mr. Saurin Shah
and Mr. Sanjay Shah of M/s. Aditya Corpex Pvt Ltd, granting full powers and
authority to do and execute the deeds mentioned therein.
2) MOU dated 7th March 2005, between M/s Midex Overseas Ltd and M/s. Aditya
Corpex Pvt Ltd - Under this MOU M/s Midex Overseas Ltd entrusted Shri
Saurin Shah, director of M/s. Aditya Corpex Pvt Ltd and S/shri Sanjay Shah,
PV Reny and Vishwas Shah, representatives of M/s. Aditya Corpex Pvt Ltd with
adequate corporate powers and control over the operations and resources of the
company to the extent necessary and required towards realization of DPEC 03-
04. This MOU also detailed the terms of payment to be received by M/s Midex
Overseas Ltd from M/s. Aditya Corpex Pvt Ltd to the tune of 67.5% of licence
value, i.e. Rs. 13.17 Crores. Power of attorney dt. 7th March 2005 was signed by
him in favor of Mr. Saurin Shah, Mr. Vishwas Shah and Mr. Sanjay Shah of
M/s. Aditya Corpex Pvt Ltd granting full powers and authority to do and
execute the deeds mentioned therein.
He further stated that it is true to say that the entire exports of 2003-04 was
done by his company without help of M/s. Aditya Corpex Pvt Ltd but the licence was
not getting issued and they were not sure of the government policy, and due to tight
monetary position, when Mr. Samir Vora offered upfront payment in lieu of usage of
licence by M/s. Aditya Corpex Pvt Ltd, they accepted the same and signed the
application for the licence and handed over the same to M/s. Aditya Corpex Pvt Ltd;
that they had received Rs 12 cr. in various trenches and which have been credited as
profits accrued from Ahmedabad office; that this Rs 12 cr had been shown as profits
generated out of the trading activity carried out solely by Adani Group at the
Ahmedabad office in the name of M/s Midex Overseas Ltd. Regarding the remittances
for the exports during 2004-05 and 2005-06 Shri Somani stated that the transaction
done by Indore Office were fully recovered, however he had no idea of any payments or
receipts for the trade done by Adani Group in their books for year 2004-05, as the
banking was done and controlled by them exclusively; that the transaction done in the
Indore office were exclusively for the products like Soyabean meal, Rapeseed meal and
Engineering Goods. As far as 05-06 is concerned M/s Midex Overseas Ltd was already
sold to Adani Group company M/s Anand Trade Movers Pvt. Ltd; that the applications
:iiextipt, in the name of M/s Midex Overseas Ltd for the year 2003-04 under DFEC
file and 2004-05 under Target Plus Scheme were prepared by Adani Group and
• — •
c-> :•,-,..tlieytikried it, and handed over to them; that the submissions to DGFT was also made
/
1:py the Adani Group, and application fee for submission of the same was also made by
36 citte
ci
, Try, Regarding the amount of US $ 14,569,067 shown against exports that have not
0 -- iikai into account under categories (A to G) as per the calculation sheet forming
0 ----
1,plaxt,t•s.the application, made under appendix 17D, for the year 2004-05 Shri Somani
that these transactions were done in Ahmedabad by Adani Group and not
related to lndore office, hence he could not comment on it. He further stated that the
application under Appendix 17D along with its enclosures, calculation sheet etc was
prepared by the Adani Group and they just signed it; that they had sold the company
somewhere in early January 2006 , and the proof of the same had also been submitted
by him and he had no idea of the present activity of M/s Midex Overseas Ltd; that till

14
•
the period the company was under his control, he could confirm that they had not
made any application/ amendments other than those mentioned by him; that they
were issued two licenses against DFEC scheme of 2003-04 , vide letter dated
24.03.2006, (file No. 02/ 98/074/00084/ am06 dt. 02.09.2005). The value of the
licence No. 0310373241 24.03.2006 was Rs. 10 crores and the value of licence No.
0310373242 dt. 24.03.2006 was Rs. 5,45,92,396.90 which was subsequently
amended to Rs.6,62,96,269.00 under amendment sheet No. 1 dt. April 17th 2006 (file
No. 03/ 98/74/74/AM06) ;that he nor his person had ever visited the office of DGFT
Mumbai except for the surrendering the DFEC license for the year 2003-04, on their
request: which came to his Indore office address; that they had received a
communication from the office of DGFT Mumbai, asking them to send the DFEC
Licencse issued in name name of M/s Midex Overseas Ltd for the year 2003-04 for
minor correction and they submitted the license back to them vide letter dt. May 8th
2006 and were delivered personally to the DGFT office; that they also inquired the
status of the license from the DGFT on July 25th 2006 and were informed by DGFT
vide letter No. 03/98/074/00084/AMO6 dated September 12th 2006; that the same
were delivered by them to address of Midex Overseas Ltd. in Ahmedabad. Since the
company had been sold by them and they did not control the company, he was not
aware as to where the license was, and the current status of the same; that he was
aware that he had signed the application for Bonded Warehouse, and some stamp
papers pertaining to it; that these papers came from office of Adani Exports Ltd.,
Ahmedabad, and Mr. Sameer Shah called him and asked him to sign it; that he did
not know where the Bonded warehouse was and what is the present status.
1.3.12 Shri Mehul Shah, Deputy Manager, M/s AEL inter-alia stated that he had
been working in AEL since last four and half year ; that he maintained books of
accounts related to precious metals which included import/exports, domestic sale
and purchase of precious metals; that he prepared his books of accounts on receipt of
hard copies of import/export invoices and other documents from their office at
Mtunbai and Delhi ; that he was reporting to Shri Samir Vora; that apart from AEL he
also looked after the accounts of M/s HEPL, M/s Aditya Corpex Pvt. Ltd ( ACPL), M/s
Midex Overseas Ltd. ( MOL); that he had been looking after accounts of above said
companies since last two years; that Shri Samir Vora and Shri Saurin Shah were the
directors in HEPL and ACPL respectively; that there were 6-7 suppliers (overseas) of
diamonds imported by AEL viz. (i) Daboul Trading- Dubai, (ii) Al Shahad Gold
Jewellery- Sharjah (iii) Shine Jewellery- Dubai, (iv) Gold Star FZE- Dubai and (v) D.J.
Ltd- Dubai; that the abovesaid companies were supplying diamonds to HEPL, ACPL,
MOL, M/s Jayant , M/s Inter Continental and M/s Bagadiya; that there may be other
suppliers also; that the overseas buyers of diamonds exported by AEL and other
companies mentioned above were (i) Kamsun Development- Hong Kong (ii) Gudam
International- Singapore, (iii) Gracious Exports- Singapore and (iv) Emperor
Overseas- Singapore; that the books of accounts pertaining to M/s Jayant Agro
Organics Ltd ( JAOL) and M/s Bagadiya Brothers Pvt. Ltd ( BBPL ) were maintained
by Shri Vishwas Shah also Deputy Manager, AEL at Adani House, Ahmedabad; that
employees of AEL were authorised to sign the bank cheques and other bank
documents; that he had been authorised to sign bank cheques and other bank
documents pertaining to HEPL; that all the bank cheque books and other banking
documents pertaining to these companies were in the possession of Shri Mahadevan,
Deputy General Manager, Banking 86 Finance; that on an average 20-25 consignments
of diamonds were imported and 15-20 consignments were exported by AEL and other
companies; that terms and conditions of imports of diamonds made by AEL was on
L/C basis with 180 days; that in case of exports, AEL and other companies were
paying commission/ brokerage to their overseas agent ; that they were not paying any
commission for import orders; that the details of commission paid to the overseas
agent was known only to Shri Samir Vora and Shri Mahavevan; that AEL provided all
the. necessary finance to HEPL, ACPL, MOL for opening of L/C which was required for
importation of gold and diamonds ; that payments against these L/C s were recovered
from the account of these companies after receipt of export remittance; that all the
policy decisions regarding imports/exports of gold/diamonds in respect of AEL and
other companies was being taken by Shri Samir Vora in consultation with Shri
Rajesh Adani, Managing Director, AEL; that operational aspects of imports/exports of
diamonds from Mumbai was looked after by Shri Lumesh Sanghvi at Mumbai ; that
Shri Saxriir Vora looked after operations of export/import of diamonds from other
places such as Ahmedabad, Delhi, Bangalore.
1.3.13 Shri Bhavik Shah, Senior Vice President , M/s Adani Agro Pvt. Ltd (AAPL) ,
Ahniedabad interalia stated that he was Head of Finance of Precious Metal Desk of

15
AEL and was also looking after the finances of M/s Inter Continentional (
M/s Hinduja Exports Pvt. Ltd (HEPL) , M/s Aditya Corpex Pvt. Ltd ( ACPL), M/s Midex
Overseas Ltd. ( MOL), M/s Jayant Agro Organics Ltd ( JAOL) and M/s Bagadiya
Brothers Pvt. Ltd ( BBPL) related to import and export of CPD; that these companies
were in the export/import business of gold jewellery and articles of cut and polished
diamonds since last 2 years; that as per his knowledge Shri Samir Vora and Devan
Mehta were the directors in HEPL; that S/Shri. Rakesh Shah and Saurin Shah were
the directors in ACPL; that Shri Samir Vora is brother of Gautam Adani's wife and
Shri Rakesh Shah is brother in law of Gautam Adani; that Shri Saurin Shah was
working as General Manager in AEL; that AEL provided financial assistance to HEPL
,ACPL, MOL and BBPL by way of opening L/C for the imports of precious metals and
diamonds and by arranging short time loans from associates companies; that these
companies repaid the loans given after receipt of remittance of exports; that Shri
Samir Vora looked after entire business of exports/imports of gold & diamonds for all
the above said companies; that he (Bhavik Shah) interacted with Shri Tejas Chokshi
of M/s Dabhol Trading Co. LLC, Dubai regarding financial transaction of import and
export of diamonds on behalf of abovesaid companies; that one Shri Rakesh Shah
employee of Adani Global FZE, Dubai coordinated for the business of export and
imports of gold and diamonds with Dabhol Trading Co. LLC, Dubai; that M/s Adani
Global FZE, Dubai , GA International, Dubai, Adani Global PTE , Singapore and
Adani Global Ltd, Mauritius were the overseas group companies of Adani ; that Shri
Vinod Shantilal Shah ( Adani), director of M/s Adani Global FZE, Dubai is brother of
Shri Gautam Adani and Shri Rajesh Adani; that he did not know about the other
directors of overseas Adani group of companies; that Shri Lumesh Sanghvi looked
after operational part of AEL at Mumbai and Shri Ajit Barodia was looking after
clearance part of AEL; that AEL recovered service charges on accounts of opening
L/C's for HEPL and ACPL ,similarly AEL or associate companies charged interest on
short term loans provided to above companies or JAOL, MOL and BBPL ; that Shri
Sarnir Vora was overall incharge of precious metals and diamonds and taking
decision regarding pricing of gold/ gold jewellery & articles, cut & polished diamonds
imported and exported by AEL and above said companies; that Shri Samir Vora was
directly reporting to Shri Rajesh Adani / Shri Samir Shah ; that the processing of the
cut and polished diamonds imported and exported by above said companies was
looked after by Shri Lumesh Sanghvi.
1.3.14 Shri Kaushal Pandya, office assistant M/s Adani Exports Ltd, inter-aline stated
that he was looking after the work of data entry of export documentation in the
Ahmedabad office; that he was asked to report to Shri Lumesh Sanghavi in the
Mumbai office; that in the Mumbai office he was asked by Shri Lumesh Sanghavi to
prepare the export invoices of diamonds on the basis of hand written details provided
to him by Lumesh Sanghavi; that accordingly he prepared the invoices on the
computer installed in the office of M/s Adani Exports Ltd; that he was instructed by
Shri Lumesh Sanghavi to sit in the office of M/s Aditya Corpex Pvt Ltd situated at
706, Raheja Centre Nariman Point, Mumbai; that Lumesh Sanghavi was looking after
the import/ export activities of M/s Aditya Corpex Pvt Ltd and as per Lumesh's
instructions all the activities of M/s Aditya Corpex Pvt Ltd were controlled; that Shri
Manish Shah, an employee of M/s Adani Exports Ltd looked after all the
administrative work of M/s Aditya Corpex Pvt Ltd such as payments of rent,
telephone, light bills etc; that Manish Shah did not sit permanently in the office of M/s
Aditya Corpex Pvt Ltd; that Shri Bhor used to look after the customs clearance work of
the import and export of diamonds and carry the packets of the diamonds to Air
Customs for appraising; that Shri Bhor reported to Sri Ajit Barodia, who was also :m
_ employee of M/s Adani Exports Ltd. and looked after customs clearance work of
;imports and exports at Mumbai; that in the office of M/s Aditya Corpex Pvt. Ltd., he
irt&Vishal Bhaysar prepared the export invoices of cut and polished diamonds as per
14e' andwritten details given to him by Mr. Lumesh Sanghvi; that details such as
tion of the diamonds, size, carats, rate, name of the buyer, bond no., against
yirliv_ the exports were made etc, written on a blank paper were provided to them each
and,;every time; that he along with Shri Rahul Bhor wrote the details in a customs
bt$,id register maintained in the office of Aditya Corpex Pvt. Ltd.; that the delivery of
The consignments to their office after customs clearance were made by insurance
agencies Malca Amit, Mumbai and Brinks Arya; that either he or Mr. Rahul used to
receive the parcel in the office of M/s Aditya Corpex Pvt. Ltd. with the AWB, BE and
invoice etc.; the parcel of diamonds packed in light aluminum box in a canvas/plastic
bag; that only one metal box was received against one bill of entry and that the met al
box contained different packets of imported diamonds wrapped lot wise in a plain
white paper and on each packet endorsement i.e. 1,2,3 etc (lot No. as per invoice) and
•

16
•
carats (weight) with pencil was written; that on the same day Lumesh Sanghvi used to
come to the office of M/s Aditya Corpex Pvt. Ltd to check the parcel/contents; that
Shri Lumesh Sanghvi used to take out the packets of certain lots from the parcel for
sorting into various sizes by assorters in the office of "Aditya Corpex Pvt. Ltd. ; that in
his absence Lumesh used to give instructions to him on phone regarding the sorting to
be done; that the assorters used to separate diamonds based on their sizes with the
help of sieves on the instructions of Shri Lumesh Sanghvi and under his supervision;
that upon working into different sizes two to four lots of different size groups were
niade and packed separately in plastic bags and were weighed; that they used to tally
the weight of the imported diamonds after separating it lot wise; thereafter they (Rahul
or Kaushal) used to keep the diamonds in transparent plastic bag and wrap them in
plain white paper and put lot no. and carats with pencil as per the details shown for
the said diamonds in the export invoice; that thereafter on completion of packing, they
used to fax the export invoice to their CHA Jasraj Kalyanji and to their
Security/insurance agency for the purpose of preparation of customs documents by
CHA and for taking delivery of diamonds by the security agency; that the parcel were
presented for appraising before exports by Shri Rahul Bhor at Bharat Diamond
Bourse; that he looked after the aforesaid work in Aditya Corpex Pvt. Ltd. from
October 2004 to June 2005; that for some period during March 2005 to April 2005, as
per th instructions of Shri Lumesh Sanghvi, he had worked in the office of M /s
Hinduja Exports Pvt. Ltd. Located at Dalarnal House, Nariman. Point, Mumbai where
he used to prepare the export invoices of M/s Hinduja Exports Pvt. Ltd. on the basis of
hand written details provided to him by Shri Lumesh Sanghvi on a plain white paper;
that except preparation of export invoices all other activities done by him in Aditya
Corpex Pvt. Ltd. were done by Shri Bhavik Desai for M/s Hinduja Exports Pvt. Ltd ;
that 112 was the authorized signatory for M/s Aditya Corpex Pvt. Ltd. for signing
various export documents; that in the case of M/s Hinduja Exports Pvt. Ltd. , he was
not authorized to do so and documents were signed by Shri Bhavik Desai; that the
invoices were prepared on computer and were mailed to Mr. Mehul Shah of accounts
department of their Ahmedabad office and that he would have taken a print out of the
same and must have got it signed by Mr. Vishwas Shah for submitting to the bank;
that ali the copies of the invoices submitted to Customs were signed by either him or
Shri Vishal Bhaysar; that he used to e-mail the invoices to Mr. Mehul Shah at
meshah@adanigrop,corn;
1.3.15 3hri Kamraj Pitambar Bodal, Office Assistant of M/s. Adani Exports Ltd. inter-
alia stated that he was working with M/s. Adani Exports Ltd. since April 2002 as
Office Assistant and working under the directions and instructions of Shri Lumesh
Skinghavi; that M/s. Adani Exports Ltd. were carrying out import and export business
of cut 8G polished diamonds under Bond from the private bonded warehouse; that Shri
Lumesh Sanghavi used to inform about the diamonds to be received and their CHA
M/s. Jasraj Kalianji used to send them invoice and airway bill in respect of the import
consignments of diamonds; that he used to take physical delivery of the diamonds
arid used to make an entry of the same in bond register; that Shri Lumesh Sanghavi
used to bring assorters along with him and they used to assort the diamonds by
sieving and boiling ; that the assorters segregated the diamonds as per quality and
they used to pack the same for exports ; that he never participated in said assorting of
diamords; that thereafter on the instructions of Shri Lumesh Sanghavi, he used to
prepared export invoices by typing the same on the computer installed in their office ;
that he had never seen any export orders from foreign buyers to whom they are
exporti:ig cut and polished diamonds; that Shri Lumesh Sanghavi never informed him
anything about any such order ; that he used to type the invoices, as per the material
details provided by Shri Lumesh Sanghavi with regard to name/address of buyer; port;
-ifet&Tiption, weight Et rate/value of the cut & polished diamonds; that he had already
I'Pre1S51-one sample of export invoice in the excel worksheet of their office computer
t erotri„- e had given formula for automatically generating the export value of the
It
!;,s d arnonag y feeding import value in the rate column; that he used to prepare the
. retyping on the last existing invoice. The formula given by him was : Value
:a extort 4 Import Rate x 5% or 10% x Weight of diamond in Carats ; that this sample
,invoice has been prepared on the instructions received from Shri Lumesh Sanghavi;
Aka_ he used to sign the export invoices of M/s. Adani Exports Ltd. and apart from
him Shri Lumesh Sanghavi used to sign the same; that he had no knowledge of cut as
polished diamonds; that Shri Lumesh Sanghavi used to decide the value of diamonds
exported by M/s. Adani Exports Ltd; that they were receiving faxes from Ahmedabad
office o' M/s. Adani Exports Ltd; that the said faxes pertaining to the import invoice
for import of cut and polished diamonds by M/s. Adani Exports Ltd. as well as M/s.
Jay-ant Agro Organics Pvt. Ltd., M/s. Aditya Corpex Ltd., M/s. Midex Overseas Ltd.,

17
M/s. Hinduja Exports Ltd., M/s. Bagadiya Brothers Pvt. Ltd; that the invoices in
respect of above said 5 firms other than M/s. Adani Exports Ltd. used to come for Shri
Lumesh Sanghavi and he used to keep said invoices with him.
1.3.16 That the entire activity of import and export of CPD of all the five firms
HEPL, JAOL, ACPL, BBPL and MOL were all managed and controlled by AEL only is
further strengthened by the statement of Shri Vipul Popat alias Pappu, Partner, M/s
Jasraj Kalyanji and Co. (CHA 11/ 110). Shri Vipul Popat inter-alia stated that their
firm was dealing exclusively into the clearance of import and export of Diamonds and
Gold Jewellery and machinery related to this industry; that he was introduced with
M /s Hinduja Exports Pvt. Ltd, M/s Midex Overseas Ltd , M/s Aditya Corpex Pvt. Ltd
and M/s Bagadia Brothers Exports Pvt. Ltd by Shri Deven Jitendra Mehta; that Shri
Deven Mehta had come to their office somewhere in the year 2004 ; that initially Shri
Deven Mehta had brought two parties viz. M/s Hinduja Exports and M/s Adit3a
Corpex Pvt. Ltd and had requested whether he would clear the documents of Import s
and exports of Cut and Polished diamonds of these parties; that Shri Deven Mehl a
further informed him that the documentation part of both these companies would be
looked after by Shri Manish and Shri Kaushal respectively; that after working on the
modalities, they had started the work of both these parties; that none of these parties
imported / exported Cut and Polished Diamonds prior to this period; that both these
parties had applied and obtained permission to operate private bonded warehouse for
the activity of Import/ Export of Cut and Polished Diamonds under Section 58 of the
Customs Act, 1962; that he never interacted with the management of both these
firms; that he always interacted with Shri Manish and Kaushal respectively for day to
day operations of these two firms; that thereafter Shri Deven Mehta introduced with
two other firms viz. M/s Midex Overseas Ltd and M/s Bagadiya Brothers Pt t. Ltd;
that these two firms were introduced to them by Shri Deven Mehta somewhere in the
month of February 2005; that Shri Deven Mehta informed him that these two parties
will also be applying for permission to operate Bonded Warehouse under Section 58 of
the Customs Act, 1962, he also informed that that the documentation part for these
two firms will be looked after by Shri Vishal and Shri Rakesh respectively; that Shri
Deven Mehta was introduced to their firm by Shri Lumesh Sanghavi, a senior person
working in M/s Adani Exports and looks after all the Import and Export documents
of Cut and Polished Diamonds of M/s Adani Exports; that their CHA firm handled the
imports/ Exports of Cut and Polished Diamonds of M/s Adani Exports since last four-
five years; that they also interacted with Shri Kamraj Badal, who handled the
documentation in M/s Adani Exports ; that Shri Manish used to look after the
documentation of M/s Bagadiya Brothers in the earlier period also used to look after
the documentation of M/s Hinduja Exports; that as far as they knew these four
companies were controlled by Shri Deven Jitendra Mehta.
Shri Rajesh Adani, Managing director of Adani Exports Ltd., during the
recording of his statement was confronted with the fact regarding the existence of
MOU between its group/sister concerns and the three companies mentioned aboN e
and the fact that the exports of CPD of all the six companies was arranged for and
managed by Adani Exports Ltd. and that the benefits of Target Plus Scheme were to
accrue to Adani group of companies, he interalia confirmed it. Also when Le was
confronted with the fact that M/s. Hinduja Exports and M/s. Aditya Corpex wei e paid
a sum of Rs. 12.5 crores and Rs. 8.5 crores were taken over on payment of 12.5
crores and Rs. 8.5 crores respectively even though none of its asssets or liabilities
were taken over, he confirmed the facts.
1.:3.17 Thus, it is evident that out of the above said five firms; HEPL and ACP:, weie
indirectly owned, managed and controlled by AEL. In so far as the other three firms
viz. JAOL, BBPL and MOL are concerned, they had entered into a fraudulent
arrangement with HEPL/ ACPL, by entering into MOUs so as to attain the desired
.
turnover for obtaining the benefit of Target Plus scheme. According to this
aitAngement the entire activity for exports to achieve the desired turnover including
'arrangement of finance was to be managed by AEL through its group companies and
emplioyees. Their involvement and participation in the activity of import and export of
CPI:As explained by the incentives assured to them by AEL through the Memorandum
of Understanding (MOU) entered in to by AEL with these firms. It was alleged that
the statements recorded during the investigations as detailed above clearly reveal that
the said companies entered into a clandestine arrangement of transferring export
performance from one company to another to artificially boost the export turn-over of
a company for availing of the benefit of Target Plus Scheme with the ultimate intention
of transferring the benefit to the Adani Group.
•

18
S
1.4 The content of the MOU's illustrated bring out the nature of the arrangement:-
1.4.1 MOU dated 25.11.2004 between HINDUJA EXPORTS PVT. LTD (HEPL) and
JAYANT AGRO ORGANICS LTD. (JAOL)
Clause.1 JAOL is a recognized Status Holder as per Para 3.5.2 of policy and is in the
business of export of Caster Oil and various Caster Oil derivatives. Below mentioned
are the approximate FOB value of Exports of JAOL;
Financial Year EOU NON-EOU Total Exports
(Inc. EOU approx.)
2003-2004 104 106 210
2004-2005
( Projected)
100 250 350
JAOL Shall submit certificate to HEPL duly certifying the above figures of FY 2003-
2004 from their statutory auditors.
Clause.2. For the purpose of getting 15% Duty Credit Entitlement, JAOL will
have to achieve Rs. 420 Crores of FOB value of Exports (100% incremental growth) in
the current financial year 2004-2005. Moreover, the entire exports of Rs.420 Crores
shall be exported by JAOL from Non- EOU unit.
Clause.3. Out of Total Exports of Rs.420 Crores to be done, JAOL shall exports
approximately Rs.250 Crores from their Non- EOU Unit. Balance exports of
approximately Rs. 170 Crores shall be facilitated by HEPL to be done in the name of
JAOL.
Clause.4 HEPL has agreed to pay consideration amount to JAOL at 1.65% on
FOB value of Exports to be done by JAOL from their non EOU unit. Out of the
projected exports of Rs. 250 Crores from their Non- EOU nit, JAOL has already
completed exports of Rs. 140 Crores till date.
Clause.5 HEPL shall facilitate balance exports of Rs. 170 Crores of various
items in current financial year in consonance with the provision and rules of the
Exim- Policy 2004-2009.
Clause.6 :- Schedule of Payment Rs.50 lacs on Signing of MOU, balance
amount on producing Chartered Accountant certificate within 7 days on Monthly
basis.
Clause.7.
Clause.8. HEPL shall have full rights as permitted in the policy for utilization
of Duty Credit Entitlement to be issued in favour of JAOL, as per Para 3.7.3 of Exim
Policy 2004-2009 , JAOL shall co-operate for the utilisation of the Duty Credit
Entitlement by HEPL and JAOL shall be bound by the instruction and direction of
HEPL in the Matters of utilisation of Duty Credit Entitlement in consonance with the
provisions and rules of Exim Policy 2004-2009.
1.4.2 MOU dated 28.1.2005 between M/s Hinduja Exports Pvt Ltd and M/s
Bagadiya Brothers Pvt Ltd
The MOU stated interalia, that M/s Bagadiya Brothers Pvt Ltd had approached
M/s Hinduja Exports Pvt Ltd to assist them in their exports to achieve the exports for
target plus scheme and M/s Hinduja Exports Pvt Ltd agreed to do the same, at the
terms and conditions and for the consideration set out hereinafter.
Para 1. Intent of the parties :
The MOO is intended to record the basic agreement between M/s Bagadiya Brothers
Pvt Ltd and M/s Hinduja Exports Pvt Ltd in respect of the purpose and transaction set
out above.
Notwithstanding anything stated in the MOU, in respect of the balance exports, M/s
Bagadiya Brothers Pvt Ltd shall be owner of the goods and the export turnover shall

S
19
be exclusively to the account of M/s Bagadiya Brothers Pvt Ltd .
Para 5. Consideration:
In consideration of the assistance provided by M/s Hinduja Exports Pvt Ltd to M/ s
Bagadiya Brothers Pvt Ltd, M/s Bagadiya Brothers Pvt Ltd shall under the guidance
and at the instruction of M/s Hinduja Exports Pvt Ltd import such goods utilize the
entire DFEC 04-05 solely for the import of such permissible goods for the exclusive
benefit of M/s Hinduja Exports Pvt Ltd provided that only such items shall be
imported as are permissible under the FTP M/s Bagadi) a
Brothers Pvt Ltd shall not protest , object or hinder the vesting of the benefits under
the DFEC 04-05 in M/s Hinduja Exports Pvt Ltd , M/s Bagadiya Brothers Pvt Ltd
shall be bound by the instructions and directions of M/s Hinduja Exports Pvt Ltd in
the matter of utilization of DFEC 04-05 in consonance with the provisions and rules
of the FTP and also in the disposal use, transfer of the goods including inputs and
finished products manufactured there from in accordance with the provisions of FTP.
Para 5.2.1. M/s Hinduja Exports Pvt Ltd shall pay M/s Bagadiya Brothers Pvt
Ltd at the rate of 2.50 % on M/s Bagadiya Brothers Pvt Ltd obligation ( Rs. 235
Crores) amounting to Rs. 5,87,50,000/- ( Rupees Five Crores Eighty even Lakhs and
Fifty Thousand only) which shall be payable in the following manner
Rs. 1,00,00,000/- upon signing this MOU
Rs. 1,00,00,000/- on Feb 7th 2005
Rs. 1,00,00,000/- on Feb 20th 2005
Rs. 1,00,00,00/- on Feb 28th 2005
Balance payment @ 2.5% on FOB value of exports within 10 days on handing over of
complete set of export documents
Para 6.1
Obligations of M / s Bagadiya Brothers Pvt Ltd :
M/s Bagadiya Brothers Pvt Ltd shall submit copy of all relevant export
documents, as specified by M/s Hinduja Exports Pvt Ltd , of Rs. 1,55,00,00,000,"-
pertaining to financial year 2004-05 and to M/s Hinduja Exports Pvt Ltd within 7
days from effective date. . Further as and when exports take place, M/s Bagadiya
Brothers Pvt Ltd shall ensure that one full set of export documents is submitted to
MIs Hinduja Exports Pvt Ltd within 15 days of date of exports. However, figures of
export shall be given to M/s Hinduja Exports Pvt Ltd on weekly basis.
M,/s Bagadiya Brothers Pvt Ltd shall immediately inform M/s Hinduja Exports Pvt Ltd
upon issuance of DFEC 04-05
Kis Bagadiya Brothers Pvt Ltd shall raise invoices in accordance with the directions of
Mis Hinduja Exports Pvt Ltd in order to enable M/s Hinduja Exports Pvt Ltd to realize
the benefits of DFEC 2004-05, subject however that such directions issued by M/s
Hinduja Exports Pvt Ltd are in accordance with the requirements of the FTP and the
applicable provisions of any other laws for the time being in force.
MI's Bagadiya Brothers Pvt Ltd agrees and confirms that M/s Hinduja Exports Pvt Ltd
shall have full rights, interest and benefits of the DFEC 04-05, whether issued in
part or full.
M/ s Bagadiya Brothers Pvt Ltd undertakes to achieve an export turnover of a further
sum of Rs. 80.00 crores by the close of the financial year 2004-05
6.2 Obligations and Undertakings of M/s Hinduja Exports Pvt Ltd
All statutory levies, taxes and imposts such as sales tax, excise, turn over tax
and any other levies, taxes and imposts arising out of achieving balance Exports and
while utilizing DFEC 04-05 shall be to the account of M/s Hinduja Exports Pvt Ltd
Mjs Hinduja Exports Pvt Ltd shall facilitate balance exports of Rs. 15 Crores of
various items in current financial year in consonance with the provisions and rules of
the policy.
M/s Bagadiya Brothers Pvt Ltd will not be responsible / liable for any reason if the
DFEC 04-05 is not issued / any change in EXIM Policy. M/s Bagadiya Brothers Pvt
Ltd will not refund the premium of 2.5 % i.e Rs. 5,87,50,000/- paid by M/s Hinduja
Exports Pvt Ltd .
1.4.3 MOU dated 18/1/2005 between Aditya Corpex Ltd. (Aditya) and Midex

20
•
Overseas Ltd. (Midex) :
The MOU stated that interalia, M/s Midex Overseas Limited has approached
M / s.Aditya Corpex Pvt Ltd to assist them in their exports to achieve the exports for
target plus scheme and M/s Aditya Corpex Pvt Ltd has agreed to do the same , at the
terms and conditions and for the consideration set out hereinafter.
Para 1. Intent of the parties :
- The MOU is intended to record the basic agreement between M/s Midex Overseas
Limited and M/s.Aditya Corpex Pvt Limited in respect of the purpose and transaction
se•t out above.
- Notwithstanding anything stated in the MOU, in respect of the balance exports, M/s.
Midex Overseas Limited shall be owner of the goods and the export turnover shall be
exclusively to the account of M/s Midex Overseas Limited.
Para 4. Consideration:
In consideration of the assistance provided by M/s Aditya Corpex Pvt Ltd to M/s.
Midex Overseas Limited, M/s. Midex Overseas Limited shall under the guidance and
at the instruction of M / s Aditya Corpex Pvt Ltd import such goods utilize the entire
DFEC 04-05 solely for the import of such permissible goods for the exclusive benefit
of M/s Aditya Corpex Pvt Ltd provided that only such items shall be imported as are
permissible under the FTP in the utilization of the DFEC0405. M/s. Midex Overseas
Limited shall not protest , object or hinder the vesting of the benefits under the
DFEC0405 in M/s. Aditya Corpex Pvt Ltd, M/s. Midex Overseas Limited shall be
bound by the instructions and directions of M/s. Aditya Corpex Pvt Ltd in the matter
of utilization of DFEC0405 in consonance with the provisions and rules of the FTP
and also in the disposal use, transfer of the goods including inputs and finished
products manufactured there from in accordance with the provisions of FTP.
Para 4.1. M/s Aditya Corpex Pvt Ltd shall pay M/s Midex Overseas Limited,
in respect of DFEC0405, Rs.4,50,00,000/- crores (Rupees Four Crores fifty lakhs) as
consideration, which shall be payable in the following manner
Rs. 4,50,00,000/- upon signing this MOU
Rs. 1,00,00,000/- between Feb 15th 2005 to Feb 20th 2005
Rs. 1,00,00,000/- between March 15th to March 20th 2005.
Para 5.1 Obligations of M/s Midex Overseas Limtied :
- M / s Midex Overseas Limited shall submit copy of all relevant export documents, as
specified by M/s Aditya Corpex Pvt Ltd of approximately Rs. 100 crores pertaining
to financial year 2004-05 to M/s Aditya Corpex Pvt Ltd. within 7 days from effective
date. Further as and when exports take place, M/s Midex Overseas Limited shall
ensure that one full set of export documents is submitted to M/s Aditya Corpex Pvt
Ltd within 10 days of date of exports. However, figures of export shall be given to M/s
Aditya Corpex Pvt Ltd on weekly basis.
- M/s Midex Overseas Limited agrees and confirms that M/s Aditya Corpex Pvt Ltd
shall have full rights, interest and benefits of the DFEC 04-05, whether issued in
part or full.
- M/s Midex Overseas Limited undertakes to achieve an export turnover of a further
sum of Rs. 20.00 crores by the close of the financial year 2004-05
5.2 Obligations and Undertakings of M/s Aditya Corpex Pvt Ltd
- All statutory levies, taxes and imposts such as sales tax, excise, turn over tax and
any other levies, taxes and imposts arising out of achieving balance Exports and
while utilizing DFEC 04-05 shall be to the account of M/s Aditya Corpex Pvt Ltd
- M/s Aditya Corpex Pvt Ltd shall facilitate balance exports of various items in current
financial year in consonance with the provisions and rules of the policy.
L4.4 Shri Rajesh Shantilal Adani, Group Managing Director of M/s. Adani Exports
Limited (Now Adani Enterprises Limited) in his statement recorded on 11/ 1/2007
inter-alia stated that the imports and exports of cut and polished diamonds by M/s.
Adani Exports Ltd. and its group / associate companies viz. M/s. Hinduja Exports
Ltd., M/s. Aditya Corpex Ltd., M/s. Bagadiya Brothers Pvt. Ltd., Jayant Agro Oils
ad., and Midex Overseas Ltd., with whom they had signed MOUs for achieving export
turnover were all handled by the precious metal desk of their company, and Shri
3ameer Sevantilal Vora, Deputy General Manager of their company and Shri Saurin

21
Shah, Senior General Manager of M/s. Adani Exports Ltd. were the over all in charge
as regards the imports and exports of cut and polished diamonds and other precious
metals, such as gold, gold jewellery, rough diamonds, etc. for all the companies .
1.5. During the course of the searches, documents as well as computers relevant to
the case were withdrawn under panchnama. In course of searches, it was noticed that
M/s. Adani Exports Ltd and five other companies (herein after referred to as "group
companies") had obtained licences for warehousing of imported cut and polished
diamonds under Section 58 of the Customs Act, 1962. The bonded warehouses set up
by AEL and others are under the provisions of Para 4A.18 of the FTP, 2004-2009. Para
4 A 18 of FTP 2004-09 allows exporters to set up Private/Public Bonded Warehouses
for import and re-export of Cut and Polished diamonds subject to a minimum value
addition of 5 %.
The permission for setting up Private/ Public Bonded Warehouses was granted
by Customs under Section 58 of ther Customs Act, 1962 as per the following details
Sr.No Name of the
Party
Date on which
Permission
granted by
Customs under
Para 4A 18
Address for which Permission to set
up warehouse granted
01 M/s Adani
Exports Ltd
02-07-2003 64-A, 6th Floor, Maker Chamber-III,
Nariman Point, Mumbai-400021.
02 M/s Aditya
Corpex Pvt
Ltd
11-11-2004 Room no. 706, Raheja Centre, 214,
Free Press Journal Marg, Nariman
Point, Mumbai-400021
03 M/s Hinduja
Exports Pvt
Ltd
09-11-2004 506, 5th Floor, Dalamal House,
Nariman Point, Mumbai-400021
04 M/s Bagadiya
Brothers Pvt
Ltd
15-03-2005 3/ 28, Devkripa Building, Raichur
Street, Masjid ( East), Mumbai-
400009
05 M/s Jayant
Agro Organics
Ltd
07-03-2005 116, Commerce House, CTS No. 123.
Street no. 140, Nagindas Market.,
Mumbai.
06 M/s Midex
Overseas Ltd
28-02-2005 807, Maker Chambers-V, Nariman
Point, Mumbai-400021
•
Scrutiny
they were issued
„..rr.,
-=.7:fTepect of CPD in
' •
••,, `. •
/ • -
iCz . k • •
i ". • "
• • 1
ifly
••••
Zs.,*NT.;t• •
.7. •
of the applications made by these companies (RUD 6) revealed that
licence under Section 58 for carrying out following operations only in
their above mentioned bonded premises at Mumbai :
To import Polished Diamonds
To Sieve the Diamonds
To Assort the Diamonds
To do the boiling of the Polished Diamonds
To pack the Cut and Polished Diamonds
To Re-export them.
They were however not permitted to carry out any manufacturing activity in the
said bonded premises as they neither applied for nor issued any licence / permission
for manufacture under Section 65 of Customs Act, 1962.
1.5.1. In the course of investigation, it appeared that there were following
irregularities in the import and export of CPD:
1. Buyers and sellers had interrelationship and one of them had the interest in the
business of others involving circular trading and financial manipulation;
2. Mis declaration of Export value;
3. Suppression of Commission paid to overseas agent from the Customs.

22
•
1.5.2 The status of the exporter and buyers was examined during the investigation.
Import and export documents of the aforesaid companies revealed that the two Hong
Kong based companies viz. Kwality Diamonds and Seven Stars and four UAE based
companies viz. Excel Global, Jewel Trade, Crown Diamonds and KVK Diamonds had
acted as supplier as well buyer of the CPD to/ from M/ s. Adani Exports Ltd. and
group companies.
The evidence also indicated that most of the overseas companies to whom CPD
was exported by AEL and their group/ associate companies, were opened in and
around September 2004 i.e. when the Target Plus Scheme was announced. Moreover
most of them were owned and /or controlled managed by the relatives and /or
employees of M/s. Adani Exports Limited and or their overseas group companies. This
following profile of the overseas firms as received from the High Commission of India,
Singapore vide their letter no. COIN/ SIN/ SQ/2005-47 dtd.16/2 /2006,
COIN/SIN/SQ/2006-12 dated 13/4/ 2006, COIN/SIN/2006-16 dtd.9/5/2006 and
letter No. HON/CUS/HK/20/2005 dtd.14/ 2/2007 of the Consul, Consulate General of
India, Hong Kong is reproduced below:
Name of
the Firm
Address
Date of
commence
ment of
Business
Date of
stopping of
business
Name of
Proprietor/P
artner/Direc
tor
Residential
Address
1806, 18th
Floor, Progress
Commercial
Wingate
Building, 9,
Irving Street,
Causeway Bay,
Hong Kong,
P.O.Box 25/10/200 16/09/200
Ms.
Nishaben
Flat J, 2nd
Floor, Star
Mansion, 3-5,
Minden Row,
Tsim Tsa Tsui,
Trading No.98996 4 5 Vijay Gandhi Hong Kong
Seven
Flat C, 8/F,
Star Mansion,
3-5, Minden
Avenue, Tsim
Tsa Tsui, Hong 15/09/199 Ashish
Flat C, 8th
Floor, Star
Mansion, 3-5,
Minden Row,
Tsim Tsa Tsui,
Stars Kong 7 NA Pareek Hong Kong
Flat C, 14/F,
Harilela
Sphere
Mansion, 89,
Nathan Road,
Tsim Tsa Tsui,
Kowloon, Hong
Kong. P.O.Box 25/10/200 16/09/200
Ms.
Nishaben
Flat J, 2nd
Floor, Star
Mansion, 3-5,
Minden Row,
Tsim Tsa Tsui,
Trading No. 99058 4 5 Vijay Gandhi Hong Kong
1806, 18th
Floor, Progress
Room 2406,
Block A,
Perfect Mount
1•:amslin Commercial Gardens, 1 PO
Developme
nt
Intern ation
al Ltd
Building, 9,
Irving Street,
Causeway Bay,
Hong Kong.
19/10/199
8 NA
1) Kwan Ka
Yu Terence
Man Street,
Shau Kei
Wan, Hong
Kong.
1806, 18th
Floor, Progress
Flat D, 27F,
Shui Pak
131obal
enterprise
Commercial
Building, 9,
Irving Street,
Causeway Bay, 24/08/ 200 Kwan Ka Yu
Mansions, 4,
Greig Road,
Quarry Bay,
Hong Kong.
Co Hong Kong. 5 NA Terence

Kwality
Diamonds
(HK)
Twinkledia
m Hong
Kong Ltd
22/03/199
1 NA
1) 1)-,
31/10/199
6, 2)
1/10/2001
2)
10/ 1/ 1997
3)
1/10/2002
3)
29/1/2002
•
23
PNJ
Trading
Puja
Exports
Harshdiam
Flat B, 10/F,
Dor Fu Court,
5-6, Mau Fook
Street, Tsim Tsa
Tsui, Kowloon,
Hong Kong.
Flat F, 14/F,
Union Mansion,
33-35,
Chatham Road,
Tsim Tsa Tsui,
Hong Kong
C-3, 10/F,
Hankow Centre,
1 C, Middle
Road, TST,
Kowloon, Hong
Kong
08/09/200 01/09/200
3 5
09/04/199
7
29/09/199
3 NA
Ms.
Nishaben
Vijay Gandhi
1) Khunt
Hiren
Kumar
Rameshbhai
, 2) Patel
Vipulkumar
Manubhai
Shah Jayesh
Kumar I
Flat J, '2nd
Floor, Star
Mansion, 3-3,
Minden Row,
Tsim Tsa Tsui,
Hong Kong
Block F, 2/F',
Union
Mansion, 33-
35, Chathani
Road, TST,
Kowloon,
Hong Kong
Flat A3, 9/F,
Hankow
Centre. 41-E.1,
Peking Road,
TST, Kowloon,
Hong Kong.
NA
Unit 808,
Lafford Centre,
838, Lai Chi
Kok Road,
Cheung
Kim Tin
Shaman,
Kowloon, Hong 17/05/199
Ind Ltd Kong 7 NA NA
Unit 12, 2/F,
Shing Lee
Martin
Centre, 6-12,
Wing Kut
Materials Street, Hong 10/09/199 1) Li KamYiu
Co Kong 6 NA Alan
NA
Rm 913, Blk
C-2, Model
House Estate,
774, King's
Road, Hong
Kong.
Rm 1506, 15/F,
Peninsula
Square, 18,
Sung On Street,
Kowloon, Hong
Kong
1) Unit A, 9/F,
Tung Fia
Building, 27A,
Cameron Road,
TST, Kowloon,
Hong Kong, 2)
Flat 11B,
Mangan
Building, 18-20,
Cameron Road,
TST, Kowloon,
Hong Kong, 3)
Flat B3, 12/F,
Hankow Centre-
B, 4A, Ashley
Road, TST,
Kowloon, Hong
Kong
Kanakia
Jayesh P
1)Adcor
(Hong Kong)
2) Adcor
(Hong Kong)
3) Jhaveri
Darshan
Jitendra
1) Flat C, 8/F,
Golden
Mansion, 83-
85, Chatham
Road, "ST,
Kowloon,
Hong klong.
NA

24
•
Flat B, 5/F,
Hang Lung
Bank Building,
46-48, Granville
Road, TST,
Flat A, 9/F,
Chung Fai
Building, 27A,
Cameron
Road, TST.
Top Rich
Kowloon, Hong
Kong
11/05/200
5
11/11/200
5 Singh Ashok
Kowloon,
Hong Kong
Flat 3, 2/F,
Star Mansion,
3-5, Minden Ms.
Flat J, 2/F,
Star Mansion,
3-5, Minden
Little Heart Row, Hong 01/09 /200 Nishaben Row, Hong
Creation Kong 8/9/2003 5 Vijay Gandhi Kong
1) Flat G, 7/ F,
Kim Hing
Mansion, 4c.1-
51, Kimnm
4Cs
Flat 5, 9/F, Kiu
Fung Mansion,
18, Austin
I) 1) Patwa
Amit Haresh
Kumar, 2)
Road, TST,
Kowloon,
Hong Kong..
2) Diamond
Diamonds
Distributor
s
Avenue, TST,
Kowloon, Hong
Kong.
1)
11/3/1988 NA
Mehta
Hitesh
Lalitbhai.
Tower, 3/F,
Silom SOI-7,
Bangkok.
1) 100, Jalan
1) 307A,
Anchorvale
Sultan, # 09-
06, Sultan
Road, 09-38,
Singapore, 2)
Plaza, 2)
Presently at - 1) Chew Bee
5000B,
Marine Parade
Planica
307A,
Anchorvale
Choo, 2)
Rajendra
Road, # 02-
07, Hawaii
Expor:s Road, 09-38, 23/12/200 Hiralal Tower,
Pte Ltd Singapore 4 NA Mehta. Singapore
1) 100, Jalan 1) 320, And;
Sultan, # 09-
06, Sultan
Plaza, 2)
Mo Kio Ave-1,
0 08-1519,
Singapore, 2)
Emperor
Exports
Presently at -
320, Ang Mokia
Ave-i # 08- 20/09/200
1) Joseph
Selvamalar,
2) Lee Lam
307A,
Anchorvale
Road, # 09-
Pte Ltd 1519, Singapore 4 NA Cheng 38, Singapore
1) 75, Meyer
Road, # 17-
01, Hawaii
Tower,
Singapore, 2)
320, Ang Mio
Kio Ave-1, #
Gudami
Internation
al Pte Ltd
63, Robinson
Road, # 05-20,
Afro Asia
Building,
Singapore
26/05/199
7 NA
1) Chang
Chung Ling,
2) Joseph
Selvamalar,
3) Chew Bee
Choo
08-1519,
Singapore, 3)
307A,
Anchorvaie
Road, # 09-
38, Singapore.
3, Shenton 75, Meyer
Adani Way, # 19-08, 1) Vinod Road # 17-01,
Global Pte Shenton House, 08/04/200 Shantilal Hawaii Tower,
Ltd Singapore. 0 NA Shah Singapore.
307A, 03/09/200 1) Chew Bee 1) 307A,
Gracious Anchorvale 4 NA Choo, 2) Anchorvaie
Export Pte Road, 09-38, Rajendra Road, 09-38,

•
25
Ltd Singapore Hiralal Singapore, .2)
Mehta. 5000B,
Marine Parade
Road, # 02-
07, Hawaii
Tower.
Singapore
1) 320, Ang,
Mo Kio Ave-1,
# 08-1519,
Singapore, 2)
Orchid
Overseas
320, Ang Mokia
Ave-1 # 08- 15/ 12/200
1) Joseph
Selvamalar,
2) Lee Lam
307A,
Anchorvale
Road, # 09 -
Pte Ltd 1519, Singapore 4 NA Cheng 38, Singapore
From the above following observations were made:
(i) eight of the above companies viz. M/s. Wingate Trading, Hong Kong, M/s Sphere
Trading, Hong Kong, M/s. Global Enterprises, Hong Kong, M/s. Top Rich, Hong Kong,
M/s. Planica Exports Pte Ltd, Singapore, M/s. Emperor Exports Pte Ltd, Singapore,
M/s. Gracious Exports Pte Ltd, Singapore and M/s. Orchid Overseas Pte Ltd, Singapore
were all incorporated after September, 2004, i.e. after the introduction of the Target Plus
Scheme.
(ii) M/s. Wingate Trading, M/s. Sphere Trading, M/s. Top Rich, Hong Kong, M/s. l'NJ
Trading, Hong Kong and M/s Little Hart Creation, Hong Kong stopped their business
activities during 2005.
(iii) Ms. Nishaben Vijay Gandhi was the Proprietor of four companies 1) M/s. Wingate
Trading, Hong Kong, 2) M/s. Sphere Trading, Hong Kong, 3) M/s. PNJ Trading, Hong
Kong and 4) Little Heart Creation, Hong Kong, of which M/s. Wingate Trading, Hong
Kong and M/s. Sphere Trading, Hong Kong, were incorporated in September 2004 only
and all the four companies stopped their business activities during 2005 itself, in spite
of showing to have achieved such huge volumes of business. That the fact of their
closing down their business assumes significance when viewed in light of the fact that
their entire business volumes was achieved only with AEL and its group/ associated
companies and was built around the period when the Target Plus Scheme was in
existence. It is pertinent to mention that of the above three firms, M/s. PNJ Trading,
Hong Kong is the supplier (exporter) of CPD to the Indian companies, whereas the other
two companies of the same proprietor are the buyers (importer) of CPD from the same
Indian companies and that too at a value addition of 5% to 10% over the value their own
other company supplies the diamonds to the same Indian companies. This is quite
unheard of in the normal course of business.
(iv) M/s. Wingate Trading, M/s. Global Enterprises and M/s. Karnsun Development
International were all functioning from the same premises i.e. 1806, 18th Floor, Progress
Commercial Building, 9, Irving Street, Causeway Bay, Hong Kong.
(v) Of the above three companies M/s. Global Enterprises is the supplier (exporter) of
CPD to the Indian companies, whereas the other two companies M/s.Kamsun
Development International and M/s.Wingate Trading are importing the CPD from the
same Indian companies and that too at a price which is higher by 5 to 10%.
(vi) In spite of these companies being newly established and new to the trade of CPD.
they had shown an unprecedented volume of imports and exports of CPD with the
;Indian companies and that too during a short span of over one year, which even the
veterans in the business of CPD would have aspired to achieve.
-(vii),The above facts were substantiated by the details of the imports and exports of CPD
of these overseas firms
It was found that out of total exports of CPD worth 1643.02 Million US$ by the
Indian companies in 2004-05, exports worth 1314.19 Million US$ (81.63%) was only to
eight companies viz. Al Shahad Gold & Jwellery, UAE (276.89 Million US$), Choksey
Diamonds(LLC), UAE (196.87 Million US$), Excel Global, UAE (131.47 Million L S$),
G.A. International, UAE (110.68 Million US$), Gudami International PTE., Singapore
(257.24 Million US$), Karnsun Development Interantional, HK (103.40 Million US$),
D.J. Ltd., UAE, (112.10 Million US$) and Mine Gold & Jwellery, UAE (125.54 Million
US$).
(viii) Similarly during 2005-06 out of total exports of CPD worth 1448.99 Million US$,
exports worth 1347.99 Million US$ (93.02%) was only to seven companies vii. Gudami
International PTE., Singapore (178.60 Million US$), Kamsun Development I nterantional,

26
•
HK (86.49 Million US$), Emperor Exports Pte., Ltd., Singapore (172.48 Million US$),
Wingate Trading, Hong Kong (81.86 Million US$), Planica Exports (247.38 Million US$)
Gracious Exports PTE Ltd., Singapore (283.26 Million US$) and Orchid Overseas Pte.
Ltd., Singapore (297.12 Million US$).
Of the above companies Emperor Exports Pte., Ltd., Singapore, Wingate
Trading, Hong Kong, Planica Exports PTE Ltd., Singapore, Gracious Exports PTE Ltd.,
Singapore, and Orchid Overseas Pte. Ltd., Singapore were established only after
September 2004, when the target Plus Scheme was introduced.
(ix) The details of imports made by the overseas firms during 2004-04 and 2005-06
were analysed and observed that during 2004-05 out of total imports worth 1641.68
Million USD, imports worth 1304.13 Million US$ (79.44%) was effected from only seven
companies viz. Daboul Tading Co. LLC, UAE, (664.08 Million US$), Gold Star FZE, UAE
(123.29 Million US$), Spectrum Trading FZE, UAE (137.08 Million US$), Tanb Trading
LLC, UAE (171.74 Million US$), Mohd. Al Qari Gold & Jwellers , UAE (109.75 Million
US$J, Crown Diamond FZE, UAE (57.97 Million US$) and Excel Global Ltd., UAE (40.22
Million US$).
(x) Similarly in 2005-06 out of total imports of 1357.28 Million US $, imports worth
1150.22 Million US$ (84.74%) was from eight companies only viz. Daboul Tading Co.
LLC. UAE, (353.27 Million US$), Gold Star FZE, UAE (154.73 Million US$), Spectrum
Trading FZE, UAE (27.16 Million US$), Tanb Trading LLC, UAE (49.21 Million US $),
Mohd. Al Qari Gold & Jwellers, UAE (81.77 Million US$), Little Hearts, Hong Kong
(96.24 Million US$), Crown Diamond FZE, UAE (167.68 Million US$) and Excel Global
Ltd. UAE (220.16 Million US$)
1.5..3 In respect of the Singapore based firms it was observed that the addresses were
shared by individuals, as residence, and firms as Registered office:-
a) The registered office address of M/s. Planica Exports Pte Ltd, Singapore
previously was 100, Jalan Sultan, # 09-06, Sultan Plaza, Singapore. The
new registered office address was 307A, Anchorvale Road, #09-38,
Singapore. The registered office of M/s. Gracious Exports Pte Ltd, was also
located at this address. This address was also the residential address of Mr.
Chew Bee Choo, one of the Directors of M/s. Planica Exports and M/s.
Gracious Exports. This address was also the residential premises of Mr. Lee
Lam Cheng, Director of M/s. Emperor Exports Pte Ltd and M/s. Orchid
Overseas Pte Ltd.
b) The registered office address of M/s. Emperor Exports Pte Ltd previously
was 100, Jalan Sultan, # 09-06, Sultan Plaza, Singapore. (same as that of
M/s. Planica Exports Pte Ltd) The new registered office address was 320,
Ang Mo Kio Avenue-1, # 08-1519, Singapore, which was also the registered
office address of M/s. Orchid Overseas Pte Ltd. The residence of Mr. Joseph
Selvarnalar, the Director of M/s. Emperor Exports, M/s. Gudami
International and M/s. Orchid Overseas was also located at this address.
c) The registered office address of M/s.Adani Global Pte Ltd at 3, Shenton Way,
# 19-08, Shenton House, Singapore was also the residential address of Mr.
Chang Chung Ling, Director of M/s. Gudami International Pte Ltd.
I) Mr. Vinod Shantilal Shah, Director of M/s. Adani Global Ltd and Mr. Chang
Chung Ling, another Director of M/s. Gudami International were shown to
be residing at the same address : 75, Meyer Road, # 17-01, Hawaii Tower,
Singapore.
1.5.4 Most of these firms in Singapore shared common directors. The details received
from the High Commission of India, Singapore also revealed that most of the firms had
common directors. The details are as under: -
S.No. Name of person (director) Firms in which Director
1 Mr. Chew Bee Choo 1) M/s. Gracious Exports Pte Ltd.
2) M/s. Planica Exports Pte Ltd.
3) M/s. Gudami International Pte Ltd
2 Mr. Mehta Rajendra Hiralal 1) M/s. Gracious Exports Pte Ltd.
2) M/s. Planica Exports Pte Ltd.
3 Mr. Joseph Selvamalar 1)M/s. Orchid Overseas Pte Ltd.
2) M/s. Emperor Exports Pte Ltd.
3) M/s. Gudami International Pte Ltd
4 Mr. Lee Lam Cheng 1) M/s. Orchid Overseas Pte Ltd.
2) M/s. Emperor Exports Pte Ltd.

27
Mr. Ka Yu Terence (1) M/s Global Enterprise Co
(2) M/s Kamsun Development
International Ltd.
The details above clearly show the inter-relationship between the Singapore
based firms. It also brings out clearly the common interests shared by the Directors of
the above firms, with AEL and its group companies as..
(a) Shri Joseph Selvamalar, the Director of M/s. Orchid Overseas Pte Ltd,
Singapore, M/s.Emperor Exports Pte Ltd, Singapore and M/s.Gudami International
Ftc Ltd, Singapore is also a Director of M/s.Adani Global Pte Ltd, Singapore as per the
r.solution of the Directors of Adani Global Pte Ltd.
(b) Further, the contracts between M/s Gudami International, Singapore with
AEL and other 5 companies have been signed by this Ms.Mary Jopseph in the
capacity of Director. Ms. Mary Joseph, the employee of Adani Global Pte, Singapore is
also the Director of M/s. Gudami International.
(c) Further, as seen from the document recovered under panchnarna
dtcl.22/ 12/2005 from the premises of AEL, Shikhar Building, Ahmedabad [RUD-25]
Shri Chang Chung Ling, the Director of M/s Gudami International, Singapore is also a
Shareholder Director of M/s Adani Global Ltd, Mauritius and M/s Adani Global Pte,
Singapore which are the wholly owned subsidiary of AEL.
(d) Also the fact that Shri Joseph Selvamalar and Shri Chang Chung Ling are
the directors of M/s Adani Global Pte, Singapore arid /or Adani Global Ltd,
Mauritius is also evident from the balance Sheet of AEL for the year 2000-2001, for
the year 2004-05 and the balance sheet of AEL for the year 2005-2006 wherein Shri
Joseph Selvamalar and Shri Chang Chung Ling are shown as the directors of M/s
Adani Global Pte, Singapore, along with Shri Vinod Shantilal Shah, brother of the
Chairman and the Managing Director of AEL. Moreover in the said Balance Sheet for
2000-2001 Shri Chang Chung Ling is shown to be the director Adani Global Ltd,
Mauritius alongwith Shri Vinod Shantilal Shah and others. Further as per the
balance sheet for the year 2000-2001, M/s Adani Global Ltd., Mauritius is the wholly
owned subsidiary of AEL, Ahmedabad and Adani Global Pte Ltd. and Adani Global
FZE are the wholly owned subsidiaries of Adani Global Ltd, Mauritius.
It was also seen from the Email dtd.23/ 1/2006, that Ms.Mary, an employee of
M/s Adani Global Pte, Singapore was also the authorized person, or rather the Director
as is discussed in paragraph 8.5 (b) above, of M/s.Gudami International, Singarpore.
"From: " Hiren Padhya" <hiren@adanigroup.com>
To: "'Sunil Shah' <smshah@adanigroup.com>
Cc: "'Ashish Chauudhary'" <ashishc@adanigroup.com>,
"mukesh" <mukesh@adanigroup.com>
Subject: AEL GUDAMI CONTRACTadvance payment
Date: Mon, 23 Jan 2006 16:08:03 +0530
Dear Sunilbhai,
As per our teletalk, pl get this agreement signed by Gudami's authorised
person (may be Ms. Mary) and send me signed scanned copie to me and
Ashish so that another signature can be made from AEL.
IIiren Padhya"
It was said to have established that M/s. Gudami International, Singapore was
directly/indirectly owned by AEL only. Therefore, all the transactions between AEL
and the other 5 companies and Gudami International would require to be treated as
transactions between related firms wherein one has interest in the other.
Consequently, the transactions of AEL and the other 5 companies with Gudami
International cannot be termed as transactions in the normal course of international
trade.
1.5.6 Apart from the Hong Kong and Singapore based firms, the import and export of
C PD also involved firms based in UAE. Though the Directors/Partners/Proprietors of
these firms were mainly persons of UAE origin, the activities relating to the trade in
C PD with AP_I_ and group companies of these firms were controlled by AEL through the
•

28
employees of its overseas firm M/s Adani Global FZE, UAE (AGF). Further, some of tic
employees of AEL/AGF (presently with AGF and formerly with AEL in India) were ill so
the Managers/Partners/Directors of some of these UAE based firms. The details of tl e
owners of the firms were received from the Consulate General of India, Dubai. Some of
the firms wherein the employees of AEL/AGF were the Manager/Partner/Director are
as below :-
S.No. Name of the Firm Manager/Partner/Director Relationship with AEL
1 Gold Star FZE Rajendraprasad Nair Employee of AEL/Adani
Global FZE
2 Shine Jewellery Manoj Chandrashekaran
Nair
Employee of AEL/Adani
Global FZE
3 Queen Jewellery Sudhakar Kanadiga Employee of AEL/Adani
Global FZE
4 G.A.International Vinod Shantilal Shah Director of Adani Global
FZE, UAE and Adani
Global Pte Ltd,
Singapore. Also the
brother of the Shri
Gautam Adani and
Rajesh Adani Chairman
and Managing Direcotr
of AEL
5 Adani Global FZE
- (a wholly owned
subsidiary of
AEL)
Vinod Shantilal Shah
Rakesh Shantilal Shah
Brother of the directors
of AEL
The director of M/s.G.A.International, UAE is Shri Vinod Shantilal Shah who is
the brother of Shri Rajesh Adani and Shri Gautam Adani of AEL. Further, Shri Vinod
Shantilal Shah, is also a Director of M/s Adani Global FZE, Dubai along with Rakesh
Shantilal Shah, relative of the Directors of AEL as can be seen from page No. 36. of the
balance sheet of AEL for the year ended on 2000-2001. Shri Vinod Shantilal Shah is
also the Director of M/s. Adani Global Pte Ltd, Singapore which is also a wholly owned
subsidiary of AEL as can be seen from the balance sheet of AEL for the year ended
on 2000-2001.
Further, as revealed from the statement of Shri C.E.Mahadevan, L)epu 1.)
General Manager (Banking & Finance) dated 5/ 1/2007 and the statemeni
dtd.8/ 1'2007 of Shri Bhavik Shah, Senior Vice-President, M/s. Adani Agro Pvt Ltc
and incharge of precious metal desk of AEL, Shri Manoj Chandrashekaran Nair, tlic
owner of M/s.Shine Jewellery, UAE was the employee of AEL and thereafter, at thu
time of his being the owner of M/s Shine Jewellery, Shri Manoj was an employee o
M/ s Adani Global FZE Ltd, Dubai which is the wholly owned subsidiary of AEL
Similarly as per the statement dtd.8/1/2007 of Shri Bhavik Shah, Senior Vice-
President, M/s. Adani Agro Pvt Ltd and finance incharge of precious metal desk of
AEL, Shri Sudhakar, shown to be the owner of Queen Jwellery, was also 111
employee of AEL and during the period 2004 he was deputed to Dubai office tc
replace Manoj Nair.
1.5.6 Apart from the above companies where the relatives and / or the employees of
the Adani group were the directors/partners/managers it was also seen that tlic
effective control of all the Singapore, Hong Kong and U.A.E. based companies was with
the Adani group through their overseas group companies such as M/s. Adani Global
FZE, U.A.E., M/s. Adani Global PTE., Singapore, and their employees, as is evident
from the following:
Shri 13havik Shah, Senior Vice-President of M/s. Adani Agro Pvt Ltd, Ahmedabad in
his statement dated 8/1/2007 gave the postings of the following empolyees of AEL as
below :-
i) Sudhakar Nair - M/s. Adani Global FZE, UAE
ii) Ms. Mary Joseph - M/s. Adani Global Pte Ltd., Singapore

29
0
Mr. Rajesh Sagar
Mr. R. Rao -
Mr. Sayan Patel -
Mr. Vipul Desai
Mr. Jamesh Joseph
Mr. Rakesh Shah
Mr. N R Nayak
Mr. Manoj Nair
M/s.
M/s. Adani
M/s.
M/ s. Adani
M/s.
M/s.
M/s. Adani
M/s. Adani
Adani Global FZE, UAE
Global FZE, UAE
Exports Ltd.
Adani Exports Ltd.
Exports Ltd.
Exports Ltd.
Mr. S. M. Shah (Sunil Shah) M/s. Adani Global Pte Ltd., Singapore
Shri Bhavik Shah confirmed that it was true that he was in touch with Mr.
Sucihakar at Dubai, Ms. Mary at Singapore, Mr. Rajesh Sagar of Adani Global FZE,
N. r. Rao of Adani Global FZE and Mr. Sayan Patel of Adani Global and others through
E-mail correspondences, regarding the confirmation of remittances sent and received
with respect to import and exports of diamonds by AEL and the various Adani
Group/associated companies. He also stated that Mr. Sudhakar, Mr.Rajesh Sagar, Mr.
Rao and Mr. Sayan Patel are the employees of M/s. Adani Global FZE, Dubai; that
previously Mr. Manoj Nair was deputed at Dubai and in the year 2004, he came back
to India and Mr. Sudhakar had taken his place; that Ms. Mary Joseph was also
employee of M/s. Adani Global Pte Ltd., Singapore and for the last ten years looking
alter import and export operation of the company at Singapore. Shri Bavik Shah also
confirmed that the e-mail id. @adanigroup.com belonged to M/s. Adani Exports Ltd.
and the e-mail i.d. @ adani-global.com belonged to Adani Global FZE, U.A.E.
Shri Mahadevan Deputy General Manager, Banking and Finance in his
Statement dated 5/1/2007 also confirmed that he used to communicate with Mr.
Rakesh Shah of M/s. Adani Global Limited, FZE, UAE, Mr. Sunil Shah, Branch Head
of Adani Global Pte Ltd., Singapore through e mails 86 telephones since last eight to
ten years. He also stated that he had also been dealing with Mr. Tejal Death at Dubai
through E mails and telephones. Shri Mahadevan further stated that he had
communicated with Mr. Sudhkar, Mr. Manoj Nair, etc.through emails regarding
remittances relating to import and export of cut and polished diamonds, gold etc.
1.5.7 Shri Rajesh Adani, the Group Managing Director of AEL, in his statement
dtd.11/1/2007 confirmed that Ms. Mary Joseph and Shri Sunil Shah were working in
M/s. Adani Global Pte Ltd., Singapore and Shri Rakesh Shah was with M/s.Adani
Global FZE, Dubai.
That the persons as mentioned above with whom Shri Bhavik Shah, Shri
Mahadevan, Shri Sameer Vora used to communicate as regards the business relating
to the imports and exports of CPD were the employess of Adani Group of companies is
also borne out from the Adani Group Telephone Directory seized under Panchnarna
dated 24/25-01-2006 from the office premises of AEL, "Shikhar", Navrangpura,
Ahmedabad.
1.5.8 Thus the firms Queen Jewellery, Shine Jewellery, G.A.International and Adani
Gobal FZE, Dubai are all firms which are directly/indirectly owned and controlled by
AEI, the transactions of AEL and the other 5 companies with the aforesaid UAE based
firms during 2004-05 and 2005-06 cannot be termed to be at arms length. On the
ccntrary it was evident that the transactions of AEL and the other 5 companies with
these firms are all transactions between firms where one had an interest in the other.
In fact it would be proper to state that the transactions are all only between the group
firms of AEL.
In addition to the above five UAE firms, the import and export of CPD was
carried out by AEL and its group companies with other UAE based firms too viz. 1)
Daboul Trading, 2) Al Shahad Gold and Jewellery, 3) Excel Global Ltd, 4) Mine Gold
atd Jewellery, 5) Crown Diamond, 6) Tanb Trading, 7) Chokshey Diamonds LLC., 8)
Leo Diamonds. That the imports and exports of CPD by these firms as well as the
banking and financing too were being managed and controlled by AEL was apparent
from the various E-Mail communications of Ms. Mary Joseph of Adani Global Pte, Shri
Sudhakaran Nair, Shri Manoj Nair of Adani Global FZE to Shri Mahadevan and Shri
Bhavik of AEL, Ahmedabad. These E-Mail communications were retrieved by the
Directorate of Forensic Science (DFS), Gandhinagar from the hard disk copy of the
Mail Server withdrawn during the course of the search of the office premises of M/s.
AEI_ on 24-01-2006, and copies of the same were forwarded vide their letter
No.l)/EE/2006/CF/04 dated 02-01-2007. A few of the E-Mails were reproduced in

30
the Show Cause Notice however for the sake of brevity the same are not bcii ig
reproduced here. However the gist of these e mails is:
The user ID and Password for GOLD STAR FZE,User ID : 361428 ay d
Password : 496990 was forwarded by mail, which made it quite obvious that the biu-.k
account of M/s. Gold Star FZE was controlled and operated by AEL through the
personnel of its overseas subsidiary Adani Global, Dubai and Singapore. This fact d
also been confirmed by Shri Bhavik Shah, Senior Vice President of M/s.Adani Agro Pvt
Ltd, Ahmedabad and Incharge of Treasury Desk of AEL in his statement recorded (_,n
8/1/2007. In his statement he stated that the aforesaid e mail was about Intein:q
banking sent by Ms. Mary Joseph of M/s. Adani Global Pte Limited, Singapore .o
Rakesh. Shah, Dubai, Bhavik and others and copy was marked to him and others.
The same was forwarded by Ms. Mary to facilitate the banking transaction of Gold Star
FZE by the staff of Adani Global FZE / Adani Exports Ltd. Further messages as suer.
(I) "Now Gold remittance is over at our end. We will start diamond documents
remittance, we will start with Excel global' dubai from Hinduja. This is for
your information only" - Vipul Desai"
(II) "Please transfer daily 3 to 4 mio to RAK Excel A/c and STOP remitting to
UAB A/C" - Savan
(III) " Please note A/c number of Excel Global Limited's A/c with RAK Bank
0012-765195-USD AED This is for your information please - K
Sudhakar
(IV) Subject: NO FUNDING OF SHINE JEWELLERY TO BE DONE IN BANK OF
BARODA, DUBAI
With regard to the subject matter we would like to inform you that no
further payment should be made TO THE ACCOUNT OF SHIT E
JEWELLERY FZE, WITH BANK OF BARODA, DUBAI, until further
instructions regarding the same is received from our end. In case of any
emergency please consult Mr.Rakesh Shah for any decision regarding the
same -manoj"
(V) "With reference to following message, Absa Bank has asked us to
some alternative arrangement for financing our trade transaction as they
will not be able to take up transactions after one month from now. They
will also not be able to do any back to back transaction for Gudami Intl
for capital goods Also we have to open A/c of Gudami Intl with other
bank for our Diamond transactions
(VI) "This mail is with respect to opening of Daboul Trading a/c at UBS for
transfer of shares.
I have raised certain queries for UBS people (Andrew Cumming) to answer. It
would be better if we are doubly sure about the structure of transaction My
personal assessment is that we will be able to open the a/c by 30th
November (date as promised to you by Bhavikbhai and me). Coming to the
cost front, if 4.99 % of holding is shifted to Daboul i.e 10978 cr shares of Rs
60 each or Rs 65.868 crs or $14.6 million (@ Rs 45.10), then the cost would
be
a. 1.5% on the first $10 million = $0.15 million
b. 1% on the remaining $4.6 million = $0.046 miilion
So the total cost would be $0.196 miilion or Rs 90 lakhs plus brokerage
costs. Another important point is that the charge would be levied at the e]id
of every quarter and on the market value of the shares held. i had a tLlk
with Rajiv Maheshwari yesterday and if you could put in a word about the
cost reduction in charges.
Regards
Kaushal"
To summarise, the above mails : -
a. The bank account of M/s. Gold Star FZE, UAE who is shown to be
supplier of CPD to AEL and group companies is under the control and being

31
operated by AEL-.
b. M/s. Daboul Trading LLC and M/s. Shine Jewellery FZE, UAE are also
controlled and managed by AEL. The mail at Sr. No.IV above has been sent
by Shri Manoj (Manoj Nair) who is an employee of M/s. AEL (who was in
Dubai during the relevant period) using the e-mail i.d. of Daboul Trading
company which cleary indicates that Daboul Trading company was also
managed and controlled by the employees of AEL . This was indicative of the
fact that apart from Daboul and Shine Jewellery being inter relai ed, both
these firms were also under the control of AEL.
c. M/s. Daboul Trading LLC, UAE belonged to / managed and controllec: by
AEL was evident from the Mail at Sr.No. VI above of Shri Kushal Kabra of
AEL to Shri Gautam Adani, the Chairman of AEL. In the said
communication the transfer of shares to Daboul Trading and its ..:ost
implication are discussed.
d. In all the above mails the e-mail ids used for communication were
"adanigroup.com" and "adani-global.com", which admittedly belong to the
Adani group of companies as confirmed by Shri Bhavik Shal in his
statement dated 8/1/2007. Thus it was evident that the persons entering
into e-mail correspondence through the said e-mail ids are either employees
or authorized persons of Adani group and have been allotted individual e-
mail ids with their name as suffix, by the Adani group of companies.
It was said that even the bank account of M/s. Gudami International.
Singapore was opened by AEL only. This supports the contention that M/: Guclami
International with M/s AEL and its group companies were related in terms of Section
14 of the Customs Act. M/s. Gudami International was being directly/ indirectly
owned by AEL in as much as Ms.Mary Joseph, the employee of M/s. Adaiii Global.
Singapore was the Director of M/s. Gudami International.
1.5.9 Further, the mails illustrated in para 8.14 of the notice, said to have apart from
establishing the fact of control and management of AEL over the Dubai based firms,
also showed that the Singapore and Hong Kong based firms, were also being controlled
and managed by AEL and even the funding of the firms were also under the
management and control of AEL only. It was seen from that M/s. Gudami
International, Singapore who was a buyer of CPD from AEL and its group companies
was receiving funds from Dubai based firms to enable it to pay for its purchases from
AEL and others. Similar instances were also seen in the case of M/s. Gracious Exports
Pte, Singapore, M/s. Orchid Overseas Pte, Singapore, M/s. Planica Exports Ptc,
Singapore.
It was seen from these mail communications that :
i) M/s. Gudami International, Singapore and M/s. Orchid Overseas Pte Ltd,
Singapore were inter related and both these firms were managed and controlled
by AEL only as was evident from the mail of Ms. Mary Joseph. From which, it
could be seen that the funds were transferred from Gold Star, Daboul Trading,
D.J.Ltd and Spectrum Trading to Gudami International and the same funds
were utilized for making the payments on behalf of M/s.Orchid Overseas, to
M/s.Hinduja Exports Pvt Ltd. It therefore, was apparent that all these firms i.e.
the UAE and Singapore based firms were inter related with each other as well
as with AEL. Further, the import export activities of CPD and funds. of tlese
firms are under the control and management of AEL only.
ii) M/s. Gracious Exports Pte Ltd, Singapore and M/s. Planica Exports Pte Ltd,
Singapore are inter related and both these firms are managed and controlled by
L only as is evident from the mail of Ms. Mary Joseph. From the said mail
Communication it could be seen that the funds were transferred from Mine 'fold
:arid Jewellery, UAE to Gracious Exports Pte Ltd and these funds were in turn
ttansferred by M/s. Gracious Exports Pte Ltd to M/s. Planica Exports Pte Ltd.
'for making the payments in the name of M/s. Planica Exports Pte Ltd to
M/s.Hinduja Exports Pvt Ltd., showing payments towards the purchases of
CPD. It therefore, was apparent that all these firms i.e. the UAE and Singapore
based firms were inter related with each other as well as with AEL. Further, the
import export activities of CPD and funds of these firms were under the control
and management of AEL only.
iii) The inter relationship between M/s. Gracious Exports Pte Ltd, Singapore
and M/s. Tanb Trading, UAE was evident from the mail communication of Ms.
Mary Joseph at Sr. No. 5 aboe. It was seen from the said communication that
•

32
Taiib Trading is transferring funds to M/s. Gracious Exports Pte Ltd which
funds were in turn utilized for making payments to M/s. Aditya Corpex Pvt Ltd
towards the purchases of CPD.
1.5. I Olt was also established from the evidences that the activities pertaining to
import and export of CPD by the overseas firms in Dubai, Singapore and Hong Kong
were also under the control of AEL. This is illustrated by the following mail of Ms.
Asha of M /s Adani Global, Dubai to Ms. Mary of M/s Adani Global, Singapore:
"From: "asha" <asha@adani-global.com>
To: <maryPadanigroup.com>, <smshah@adanigroup.corn>
Cc: <rakesh@adani-global.corn>, <tejal@adani-global.com>
Attn: Ms. Mary
Please arrange for shipment to Al Shahad, Dubai as per following details.
You vill i eceive shipment in Gudami Intl, Singapore from Adani Exports, India, which
you have to export from Emperor / Orchid to Al Shahad, Dubai.
Please find below address details for Al Shahad Gold & Jewellery
Al Shahad Gold & Jewellery
P.B. 30712, Dubai, U.A.E.
Tel Fax: 04-3933732 / 3933792
regards
Ash a"
It is seen from the above mail that the CPD exported by AEL to M/s Gudami
International, Singapore is instructed by Ms. Asha of M/s Adani Global, Dubai to be
exported to M/s Al Shahad Gold & Jewellery, Dubai through M/s Emperor Exports/
M/s Orchid Overseas, Singapore. It indicates that : a) M/s Gudami International,
Singapore, M/s Emperor Exports, Singapore, M/s Orchid Overseas, Singapore and
M/s Al Shahad Gold & Jewellery, Dubai are all managed, controlled and operated by
AEL through its overseas firms M/s Adani Global at Dubai and Singapore, b) the
transactions between the Indian firms and the overseas firms are not genuine
transactions in the normal course of trade in as much as it can be seen that M/s
Emperor Exports/M/s Orchid Overseas, Singapore are merely used as a intermediary
for 1_ransfer of the CPD to M/s Al Shahad Gold & Jewellery, Dubai. ThatM/s Al Shahad
Gold & tfewellery was also merely another intermediary in the transfer of CPD from
AEI, to Singapore, Singapore to Dubai and back to AEL from Dubai.
That the Singapore based firms were managed and controlled by AEL only was
further corroborated by the fact that the bank accounts of these firms viz.
M/s Gracious Exports, M/s. Planica Exports, M/s.Emperor Exports and M/s.Orchid
Overseas in different banks in Singapore were all opened by M/s Adani Global Pte Ltd,
Singapore. This was evident from the following communications of Ms. Mary Joseph of
AGPL, Singapore dtd. 22/8/2005 sent by E-Mail to AEL:
"From: "Mary" <mary@adanigroup.com>
To: <savan@adanigroup.com>,
"Rao" <rao@adani-global.com>,
<rakesh@adani-global.corn>
Cc: "Smshah" <smshah@adanigroup.corn>,
<nayak@adanigroup.com>,
"mahadevan" <mahadevan@adanigroup.com>
Subject: Re: State Bank of India
Date: Mon, 22 Aug 2005 15:04:41 +0800

33
WE HAVE OPENED USD A/C WITH STATE BANK OF INDIA FOR THE
FOLLWG TWO COMPANIES AS UNDER:-
1. GRACIOUS EXPORTS PTE LTD - USD A/C NO. 4002311101
2. PLANICA EXPORTS PTE LTD - USD A/C NO. 4002301101
STATE BANK OF INDIA
6 SHENTON WAY
# 22-08, DBS BUILDING (TOWER TWO)
SINGAPORE 068809
TEL: 62222033
SWIFT: SBINSGSG
REMITTANCE DETAILS:
BANKERS TRUST COMPANY, NEW YORK
FOR CREDIT OF STATE BANK OF INDIA, SINGAPORE
CHIPS UID 132551
FOR FURTHER CREDIT TO:
GRACIOUS EXPORTS PTE LTD
USD A/C NO. 4002311101
PLANICA EXPORTS PTE LTD
USD A/C NO. 4002301101
Thanks and regards
Mary Joseph.
From: "Mary" <mary@adanigroup.com>
To: <savan@adanigroup.com>,
"Rao" <rao@adani-global.com>,
<rakesh@adani-global.com>
Cc: <nayak@adanigroup.com>,
"mahadevan" <mahadevan@adanigroup.corn>,
"Smshah" <smshah@adanigroup.com>
Subject: Re: Emperor / Orchid / Gracious / Planica
Date: Mon, 22 Aug 2005 12:07:38 +0800
WE HAVE OPENED USD ACCOUNTS AS UNDER :-
1. PLANICA EXPORTS PTE LTD WITH DBS BANK - A/C NO. 0001-012392-
01-2-022 USD
2. ORCHID OVERSEAS PTE LTD WITH DBS BANK - A/C NO. 0001-
012412-01-9-022 USD
DBS BANK
6 SHENTON WAY
•

34
I
DBS BUILDING
SINGAPORE 068809
TEL: 68788888
SWIFT: DBSSSGSG
REMITTANCE DETAILS:
BANK OF NEW YORK, NEW YORK
ABA / ROUTING # 021000018
FOR CREDIT TO DBS BANK, SHENTON WAY BRANCH
SWIFT: DBSSSGSG
CHIPS UID NO. 034675
PLANICA EXPORTS PTE LTD
A/C NO. 0001-012392-01-2-022 USD
ORCHID OVERSEAS PTE LTD
A/C NO. 0001-012412-01-9-022 USD
1. GRACIOUS EXPORTS PTE LTD WITH OCBC BANK - A/C NO. 501-
171094-301
2. EMPEROR EXPORTS PTE LTD WITH OCBC BANK - A/C NO. 501-
170195-301
OCBC BANK
65 CHULIA STREET
OCBC CENTRE
SINGAPORE 049513
TEL: 63187222
SWIFT: OCBCSGSG
REMITTANCE DETAILS:
OCBC BANK
SWIFT CODE: OCBCSGSG
BANK CODE: 7339
BRANCH CODE: 501
FOR CREDIT TO:
A/C NO. 501-171094-301
EMPEROR EXPORTS PTE LTD
A/C NO. 501-170195-301
1. GRACIOUS EXPORTS PTE LTD WITH UNITED OVERSEAS BANK LTD -
A/C NO.352-901-729-2

35
2. EMPEROR EXPORTS PTE LTD WITH UNITED OVERSEAS BANIc LTD -
A/C NO.352-901-730-6
UNITED OVERSEAS BANK LTD
80 RAFFLES PLACE
UOB PLAZA 1,
SINGAPORE 048624
TEL: 1800-2266121
SWIFT: UOVBSGSG
REMITTANCE DETAILS:
BANK OF NEW YORK, NEW YORK
SWIFT: IRVTUS3N
FOR CREDIT TO: UNITED OVERSEAS BANK LTD
80 RAFFLES PLACE, UOB PLAZA 1, SINGAPORE 048624
A/C NO. 352-901-729-2
EMPEROR EXPORTS PTE LTD
A/C NO. 352-901-730-6
Thanks and regards
Mary Joseph"
The above mail communications between the offices of Adani Group companies
at Ahmedabad, UAE and Singapore clearly prove that overseas firms with whom AEL
and its group companies indulged in so called import and export of CPD were all
managed and controlled by AEL and these firms can be said to be fronting for AEI, to
camouflage the dubious nature of the transactions and lend credibility to their
transactions. That the transactions were dubious in nature was established by the
circular movement of the CPD between the Indian firms and the UAE, Singapore nd
HPng Kong based firms. The mail communications further corroborate the fact of
ciroular movement of the CPD in as much as the funds remitted by the Indian firms to
their' overseas suppliers were in turn transferred to the overseas firms who were
buyers of CPD from AEL and its group companies and in turn returned to tlw. Indian
companies showing payments received for their exports. It was alleged that the
transaction value for the consignments exported to these companies by M/s AEL and
its group companies and declared before the Customs authorities are not acceptable
as they do not represent the true transaction value as is required with in the meaning
of Section 14 of Customs Act, 1962 as made applicable to export goods also. The few
of the mails discussed in the notice are to illustrate the nature of the relationship of
the overseas firms and establish the fact that they are being managed, controlled and
operated by AEL. All such mails which were recovered from the various computer
harddisks withdrawn during the course of the searches are relied upon and EtnneNed
•

Diamond Scam Order 2013.pdf

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Diamond Scam Order 2013.pdf

Similar to Diamond Scam Order 2013.pdf (20)

More from Hindenburg Research

More from Hindenburg Research (20)

Recently uploaded

Recently uploaded (20)

Diamond Scam Order 2013.pdf