RECORDER REPORT

ISLAMABAD: The Federal Board of Revenue (FBR) has started a nationwide investigation into a mega scam of gold exports following registration of FIRs against five exporters, who were involved in the illegal export of gold/ jewelery on fake Form-E depriving the government of foreign exchange remittances of $214.9 million.

Sources told Business Recorder here on Tuesday that the Model Customs Collectorate of Exports (Port Muhammad Bin Qasim), Karachi has unearthed the scam and submitted a detailed report to the FBR. The scam revealed that the exporters have misused the scheme of import/export of gold/jewelery under SRO 266(1)/2001, dated 07.05.2001.

The scope of the investigation has been expanded by the FBR and other Collectors have been involved to investigate the case in different cities to arrest the culprits, sources said.

Fake firms were established for committing the fraud: M/s Rubab Corporation allegedly caused a loss of $24.3million; M/s BD Enterprises $80.2million; M/s Reaz Corporation $62.8million; Sani Impex $21.7million and M/s Makkah Enterprises allegedly caused a loss of $25.9million.

The investigation in the case revealed that the racket was run mainly by Hanif Moosa and his associates, the concerned clearing agent and a Deputy Director, TDAP (under suspension), and jewelers from across the country who used the services of some persons to send their gold/ jewelery to Dubai through these fake companies and avoiding all legal liabilities. The exporters have also evaded the due amount of duties and taxes. Five fake firms were registered and given import/export authorizations to those fake companies. The main purpose of these accused persons was to facilitate the jewelers across the country to avoid documentation, banking channels, foreign exchange remittances and withholding tax/ surcharges. The modus operandi revealed the jewelers obtained undue benefits due to fake Form-E, no liability to bring foreign exchange remittance, avoiding documentation for future taxation, no withholding tax and export surcharge for exports and value and foreign exchange rate margin.

According to the report, five (5) FIRs were lodged by Model Customs Collectorate of Exports (Port Muhammad Bin Qasim), Karachi against the exporters who were involved in the export of gold/ jewelery on fake Form-E depriving the Government of foreign exchange remittances amounting to $ 214.9 million

After conducting investigation in these cases, Challan was submitted before the Special Court of Customs & Taxation, Karachi wherein following 13 persons were named as accused for misusing the scheme of import/export of gold/ jewelery under SRO 266(I)/2001 dated 7.5.2001: Hanif Moosa – Jeweler, Humayun Hanif — Jeweler, Kashan Iqbal (nephew of Hanif Moosa) — Jeweler, Sajid Abdul Qadir (Sajid Motiwala) – Jeweler, Irfan Abdul Aziz— Jeweler/Guard, Muhammad Shahid— Driver of Irfan, Kamran Siddiqui— CNIC used for M/s Reaz Corp; S. Tahir Hussain Jaffri— CNIC used for M/s Sani Impex, S. Abdul Qavi CNIC used for M/s Rubab Corporation, Bilal Qamar — CNIC used form M/s B.D. Enterprise, Aqeel Khan - CNIC used for M/s Makkah Enterprise, Zubair Langrial s/o Haji Mohammad Amir — Clearing Agent (M/s Amir & Sons) who is presently in jail in connection with four other FIRs of s lodged by FIA, Wajahat Minhas— Clearing Agent (M/s Kashan Enterprises) who is presently in jail in connection with four other FIRs of similar nature lodged by FIA, Wajahat Minhas.

Since the management of TDAP did not cooperate during the investigation, no officer was initially implicated in the scam, report of the Collectorate said.

The report said that the first nine accused persons obtained protective/ pre-arrest bail from the Sindh High Court and interim bail from the Special Court of Customs & Taxation, Karachi. The Collectorate pursued the case in the Special Court for rejection of their interim bail and succeeded in getting cancellation of their interim bail on September 7, 2015.

The report said that after rejection of the interim bail of 8 accused persons, they were taken into custody by the Investigating Officer of the Collectorate on 7.10.2015. These arrested persons were kept in the lock-up of MCC (Preventive), Customs House, Karachi. Remand of these eight accused persons was obtained from the Special Court of Customs & Taxation, Karachi, initially for five days and then for two more days till 14.10.2015. After conclusion of the remand, all the eight accused Persons, namely, Hanif Moosa, Humayun Hanif, Kashan Iqbal, Sajid Abdul Qadir, Irfan Abdul Aziz and Muhammad Shahid, Kamran Siddiqui, S. Tahir Hussain were sent on judicial custody by the Judge on 14.10.2015. Qavi was not arrested since his bail confirmation application is still pending before the Sindh High Court.

The report said that a Joint Investigation Team comprising of officers of MCC (Export), Port Qasim and MCC, Preventive, Karachi was constituted for conducting thorough investigation of these cases. During the remand period, all the above-mentioned arrested persons and Ex-Chairman of All Pakistan Gem Merchants & Jewelers Association, Shoaib Langrial, (Clearing Agent), Deputy Director, TDAP (under suspension and on bail in respect of FIRs lodged by FIA in four other similar cases). Saqib Tasleem Warsi (tripper) and Irfan Ahmed (tripper) were interrogated by the Joint Investigation Team, it said.

Findings of the Joint Investigation Team revealed that the scheme of import/export of gold/jewelery under SRO 266(1)/2001, dated 07.05.2001, was misused by Hanif Moosa (under arrest), Zubair Langrial (Clearing Agent) (under arrest), Wajahat Minhas (Clearing Agent) (under arrest), associates of Hanif Moosa, namely, Humayun Hanif (under arrest), Kashan Iqbal (under arrest), Sajid Abdul Qadir (under arrest), Irfan Abdul Aziz (under arrest), Muhammad Shahid (under arrest), Tahir (Absconder) and facilitated by Deputy Director, TDAP (under suspension and on bail) by way of registering five fake companies and giving import/export authorizations to those fake companies. The main purpose of these accused persons was to facilitate the jewelers across the country to avoid documentation, banking channels, foreign exchange remittances and withholding tax/ surcharges.

In this way, the jewelers obtained following undue benefits due to fake Form-E, no liability to bring foreign exchange remittance, avoiding documentation for future taxation, no withholding tax and export surcharge for exports and value and foreign exchange rate margin.

These fake companies were registered by an ex-Chairman of All Pakistan Gem Merchants & Jewelers Association on the basis of the recommendations given by Hanif Moosa and associates in the name of fake persons/imposters. Investigation revealed that Hanif Moosa and his associates used to tamper the CNICs of some persons (not related to Gold Business), to obtain registration of various companies with All Pakistan Gem Merchants & Jewelers Association. On the basis of these fake registrations with the Jewelers Association, Deputy Director, TDAP (under suspension and on bail) issued Jewelry Pass Books for obtaining authorizations of imports/exports of gold, gold jewelery and gemstones in the name of fake firms under the said SRO. After obtaining import export authorizations against fake firms, fake Form-Es were prepared to bypass banking channel. All the documentation, which included obtaining authorizations from TDAP preparation of lake Forms-E, preparation of Invoices and Goods Declarations was done by Zubair Langrial (clearing agent) and Wajahat Minhas (Clearing Agent). Trippers (carrier of gold jewelery) were arranged by Hanif Moosa and Zubair Langrial to whom goods are handed over after customs clearance for carriage, it said.

Investigation further revealed that the racket was run mainly by Hanif Moosa and his associates. Zubair Langrial (clearing agent), Wajahat Minhas (Clearing Agent), Deputy Director, TDAP (under suspension), and jewelers from across the country who used the services of above-named persons to send their gold/ jewelery to Dubai through these fake companies and avoiding all legal liabilities.

Following major beneficiaries across the country have been identified during the investigation: Ganj Baksh Jewelers, Malik Jewelers and Cashway Gold owned by Zahid Majeed, jeweler based in Lahore: IAJ Brothers owned by Ilyas, jeweler based in Rawalpidi, Saleem, jeweler based in Gujranwala, Yahya, jeweler based in Faisalabad and Khwaja Mehboob, jeweler based in Multan, report said.

Investigation has revealed that 75 percent of gold jewelry exported through the above-mentioned fake companies belonged to persons from upcountry mentioned above, while remaining 25 percent belonged to Karachi.

The Collectors of Customs, Lahore, Rawalpindi, Faisalabad and Multan have been requested to trace the addresses and whereabouts/ status of the above-mentioned jewelers for further investigation in respect of these cases. All other accused persons who were actually responsible for committing this crime have either been arrested or are on bail except Tahir Ali who is absconding and efforts are being made to trace him. His particulars have been procured from NADRA and efforts are being made to arrest him failing which his name shall be recommended for placing on ECL after submission of Supplementary Challan.

Supplementary challans based on said investigation/additional information is being submitted in the Court of the Special Judge (Customs & Taxation), Karachi for initiating trial of the accused persons who are the actual perpetrators of the crime, report added.