Hyderabad: City-based MBS Jewellers has been slapped a hefty fine of Rs 222.44 crore on Tuesday for exporting precious stones to a Hong Kong-based firm, in violation of the Foreign Exchange Management Act (FEMA).

The investigation revealed that Sukesh Gupta, managing director (MD), MBS Jewellers, who has been booked in several cases by the Central Bureau of Investigation (CBI), was reportedly exporting diamonds to Hong Kong.

A special court for hearing Enforcement Directorate cases fined MBS Jewellers a penalty of Rs 222.44 crore, the highest fine that has been imposed in recent times.

"MBS Jewellers PVT LTD, Hyderabad, has been booked for contravention under the provisions of FEMA. The investigation found that Sukesh Gupta violated foreign exchange management (export of goods and services) regulation and also provisions under Section 8 of FEMA to the tune of $41,123,963.29 (more than 41 million), equivalent to Rs 222.44 crore. The penalty should be paid to the ED office within 45 days from the date of receipt of this order," the court said.

Sukesh Gupta has been booked by the CBI and other anti-crime investigating agencies in several cases including bank fraud. Gupta had also faced imprisonment in a previous case.

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