Surat Diamond Trade Hawala Fraud

Central investigating agencies, including the Enforcement Directorate (ED) and the Income Tax Department, launched major search operations in Surat, Mumbai, and Delhi. The actions targeted multiple entities, including M/s Iceworth Reality LLP, the Laxmi Diamond Group, and individuals connected to real estate and diamond trading networks. Investigators uncovered alleged financial irregularities, stock price manipulation, and large-scale undisclosed transactions.

The Enforcement Directorate probed an alleged stock price manipulation scheme involving Sunrise Asian Limited (SAL) and M/s Iceworth Reality LLP. According to the ED, the company's stock price did not reflect its actual financial performance, causing losses to genuine investors while generating unlawful profits for interconnected entities, a majority of whom were involved in diamond trading.

Simultaneously, a seven-day Income Tax Department operation against the Laxmi Diamond Group and associated builders and brokers revealed nearly Rs 1,900 crore in benami transactions. Authorities seized Rs 30 crore in cash, gold, and silver jewellery, and froze over 30 bank lockers. A prominent land deal on Dumas Road for a proposed luxury hotel also came under scrutiny for suspected tax evasion and cash-dominated payments.

In separate actions mentioned in connection with financial crimes in the region, the ED investigated a separate foreign trade firm under the Foreign Exchange Management Act (FEMA), and the customs department arrested two individuals in connection with a duty evasion scam within the Surat Special Economic Zone.

Not yet reported: The articles do not provide final court verdicts or the total cumulative monetary value across all separate cases mentioned.