The Directorate of Revenue Intelligence (DRI) on Friday arrested Nilesh Parekh, promoter of Kolkata-based Shree Ganesh Jewellery House, for alleged fraud in the diversion of 1,700 kg of primary gold.

The DRI said in a press statement that several other violations, including non-realisation of remittance of ₹7,500 crore on account of export of gems and jewellery and defrauding an SBI-led consortium of banks, by non-payment of loan of ₹2,672 crore, had been uncovered.

Parekh, who was arrested by the CBI last year in connection with defrauding a consortium of banks, was out on bail.

“...he was produced before court on Friday. The accused has been remanded to eight days’ judicial custody,” a DRI official told BusinessLine . According to information with the DRI, the company, which has several units at the Manikanchan SEZ here, was involved in diversion of gold imported duty-free as a nominated agency and as an SEZ unit.

The firm could not realise the foreign exchange against the exports from the SEZ and from the nominated agency.

According to the DRI, inquiry with the RBI revealed the company had failed to realise ₹7,450 crore on account of exports to several “dummy and shell companies” in Singapore, Hong Kong and Dubai. “Further investigation is on,” the DRI official said. The case is also being investigated by the ED under FEMA and PMLA.