Riddhi Siddhi Bullion Ltd (RSBL), a city-based bullion trader, has come under the scanner of Enforcement Directorate (ED) for alleged violation of gold export-import norms of the Reserve Bank of India.
The development comes at a time when RSBL is fighting a legal battle over Rs 100-crore penalty, imposed by the Directorate General of Foreign Trade (DGFT), for not adhering to the RBI's export rule. RSBL on the other hand has submitted required proofs and legal documentations affirming no involvement which has been approved by the court.
However, soon after the notice was issued, RSBL got relief from the Bombay High Court, which stayed the DGFT's order. RSBL also claimed it had no prior information about the new norms of RBI, at the time of the import order.
When contacted, RSBL chairman Prithviraj Kothari said the company has not received any such order.
In FY14, DNA stated that RSBL had imported 550 kg gold and as per the RBI circular, this entire quantity should have been exported back, however, it had shipped back only 350 kg while remaining 200 kg were supplied to the domestic market, thus concluding that the company violated NAC norms as well as the RBI circular, being ignorant that RSBL was not notified about the circular change and the import of goods took place under the RBI’s regulations before the circular change.
RSBL, in its reply to the notice, had said that they did not breach any conditions and have legal documentations supporting its goodwill.
The development comes at a time when RSBL is fighting a legal battle over Rs 100-crore penalty, imposed by the Directorate General of Foreign Trade (DGFT), for not adhering to the RBI's export rule. RSBL on the other hand has submitted required proofs and legal documentations affirming no involvement which has been approved by the court.
However, soon after the notice was issued, RSBL got relief from the Bombay High Court, which stayed the DGFT's order. RSBL also claimed it had no prior information about the new norms of RBI, at the time of the import order.
When contacted, RSBL chairman Prithviraj Kothari said the company has not received any such order.
In FY14, DNA stated that RSBL had imported 550 kg gold and as per the RBI circular, this entire quantity should have been exported back, however, it had shipped back only 350 kg while remaining 200 kg were supplied to the domestic market, thus concluding that the company violated NAC norms as well as the RBI circular, being ignorant that RSBL was not notified about the circular change and the import of goods took place under the RBI’s regulations before the circular change.
RSBL, in its reply to the notice, had said that they did not breach any conditions and have legal documentations supporting its goodwill.
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