The general branch, crime branch, CID is now entrusted with the case. While B George is absconding, Sawhney is in Delhi on another posting.

What is not clear, however, is why the Customs department chose to file an FIR under section 409 (criminal breach of trust by government servant) with the crime branch rather than with the CBI, given that Central government employees are suspectedly involved and that the investigation may turn out to be more sensitive than it appears now.

The events asdescribed in the FIR filed by additional commissioner customs, (R&I) A K Chatterjee, read like a crime thriller. Customs Commissioner (Preventive), S S Sekhon receives `information' on June 1, 1998, that some of the packets of diamonds have been removed from the strongroom, apparently by Sawhney and George. These have been sold to a buyer after negotiations, sealed, and hidden in a place in Borivli. The tip-off is passed on to Chatterjee for investigation.

Chatterjee discovers that Sawhney had already been relieved of his post on May 26, on his transfer to IGI Airport, Delhi. George is still in Mumbai as of June 1. An inquiry, albeit discreet, is launched on June 2. First, 15 packets are discovered which are supposed to have been disposed of (in auctions conducted by the Preventive wing during Jan-April 1998), but remain in the strongroom. The rest of the packets are also examined by appraising officers along with B George, T K Sikder, Supdt, R&I and O P Lalwani, also Supdt, who check the stock. They findthree packets (lot numbers 411, 230, and 225) whose weights tally with the earlier recorded weight but the value of diamonds differs.

The lots had not been sold in the auction conducted in March 1998 since the bids were much lower than the floor price. The auctions were conducted under the supervision of S S Sekhon, Commissioner (Preventive) and T H K Ghauri, additional commissioner, who was in-charge of disposal of diamonds and jewellery.

After three valuations, (of Chatterjee's internal inquiry) the value of lot numbers 225 and 230 is put at about USD 16 to 18, and USD 60 per carat respectively. In lot 411, the value is ascertained at USD 25 per carat (earlier USD 60). Significantly, the weight of lot number 225 remains unchanged, but that of lot number 230 is more by 0.95 CTS and that of lot number 411 is less by 7.52 CTS.

Most significantly, the Customs have confirmed that George visited the strongroom on August 14, 1998, though it was holiday, ostensibly on official work. He allegedly took thekeys to the strongroom on the excuse that DRI officers had seized some property and they would be coming to deposit it there. No such seizure of the DRI or any other agency took place on that day, the customs inquiry has revealed.

Lost Sheen

The diamonds in question were seized by the Air Intelligence Unit of the Customs in 1980 and 1989. In January this year, they were put up for auction, the first such in 30 years, but remained unsold.

All the seized jewellery in Mumbai is stored in the main strongroom of the New Custom House, Ballard Estate. A superintendent of customs is the custodian. After they were returned to the strongroom, diamonds in at least three pouches were stolen and replaced with inferior quality ones. The theft came to light in June. The possibility of this happening to contents of other bags cannot be ruled out.

Questions that the FIR does not answer:

1. Why was the complaint filed with the city police and not with the CBI?

2. What happened on August 14 when Georgevisited the strongroom? Have the original diamonds been replaced? If the FIR was filed on September 15, the Customs would by now have established whether the original diamonds have been placed back.

3. When the first stocktaking was done following Chatterjee's instructions, 15 excess packets were found. Were they not disposed of, though sold, or were they added to the stock?

4. When did George allegedly abscond, and was Sept 15 too late to take the matter to the police?