INDIA’S Directorate of Revenue Intelligence has announced the arrest of two people for allegedly smuggling a consignment of diamonds from Zimbabwe valued at over US$2 million.

"Zohra Desai, 53, and Prema Desai, 49, were caught in Surat with a 48,663 carat (9.72 kg) consignment of roughs diamonds valued at Rs 10.17 crore (about US$2 million), sourced from Zimbabwe. They were trying to sell them in Surat," a DRI official told Indian media on Saturday.

"The duo recently arrived in Mumbai from Nairobi, Kenya and had come to Surat by road from Navsari. They failed to produce the mandatory Kimberley Process certificate for the roughs," he said.

This is the second major haul of diamonds smuggled from Zimbabwe in Surat by DRI over the last three years.

Two foreigners - Robai Hussain of Guyana and Yusuf Ossely of Lebanon were arrested by DRI in September 2008.

Diamonds worth about US$1 million were recovered from the duo. They were sentenced to four years in prison.

Surat, the state capital of Gujarat and one of the world’s leading diamond trading centers concluded a US$1.2 billion rough diamond supply deal with a Zimbabwean consortium.

However, Marange diamonds are at the centre of controversy with Western countries and human rights organisations keen to see a Kimberly Process export ban maintained over allegations of rights abuses and claims the country has failed to meet the minimum conditions for trading in precious stones.

The Zimbabwe government dismisses the rights abuse allegations and insists that all compliance issues have been addressed.

New KP chairman Mathieu Lapfa Lambang Yamba of the Democratic Republic of the Congo last month gave Zimbabwe permission to export diamonds from Marange but the move is being resisted by the United States, Britain and Western human rights organisations. The KP takes decisions by consensus.

Meanwhile, leading diamond trade groups such as the World Diamond Council, Jewelers of America and the Diamond Manufacturers & Importers Association of America have also instructed their members to stay away from Marange diamonds.

The US and EU also warned diamond companies against buying Marange gems with the Office of Foreign Assets Control (OFAC), which administers all US sanctions procedures, saying it would scrutinise any transactions. 

By Staff reporter and agencies