India's Pearl Imports 10 Times Higher Than Global Production
August 10, 22
(IDEX Online) - India's gem and jewelry trade faces a major "round tripping" probe after it emerged that documented imports of pearls exceeded global production by as much as 10 times.
The Comptroller and Auditor General of India (CAG) suspects fraud on a massive scale.
It reports evidence of round tripping, when companies sell and buy back the same assets in to artificially increase their turnover and persuade banks to raise their credit limits.
CAG believes the problem goes beyond pearls. It also reports irregularities in India's imports and exports of rough diamonds from 2010 to 2020.
India's pearl import of pearls between 2013 and 2019 was three to 10 times the average annual value of global pearl production, said CAG.
They came primarily from countries that produce a negligible number of pearls - UAE, Hong Kong and Thailand.
The Directorate of Revenue Intelligence also reports large-scale round tripping of gold jewelry.
Generic pearl pic.