16 TN firms face CBI probe for Customs duty fraud

At least 16 TN-based firms, including 13 from Tirupur, two in Thoothukudi and one from Chennai, are in the dock along with Customs officials, for fraudulently claiming duty drawback amounts totalling to over Rs 8 crore over a period of time through Custom House Tuticorin and St John ICD Tuticorin, according to three FIRs registered by the CBI, Madurai.

The companies had fraudulently claimed various amounts ranging from Rs 5 lakh to Rs 1.28 crore.

Hot Ice Industries, Annis International, PEC Multi-trading & Manufacturing Pvt Ltd, BSR Apparels, Sam Agencies and Carona Industries Pvt Ltd, Phoenix Clothing Company, AK Exports, PGC Corporation Limited, Shiffin Exports, Grain Impex, Gallant Exports, Sai Vigna Garments, Aaradhana Shipping Agencies, and Evergreen Exports and Phoenix Apparels Sourcing had allegedly entered into criminal conspiracy with unknown officials of the Customs Department in pursuance of the conspiracy.

The firms had fraudulently claimed duty drawback amounts by showing fictitious exports of goods. Information revealed that subsequent to availing the duty drawbacks, these firms had not received any foreign remittances as corresponding export proceeds to their bank accounts and thereby cheated the Govt. of India, noted a CBI FIR.

Among the 16 firms, Phoenix Apparel Sourcing had claimed over Rs 1.28 crore and Gallant Export had claimed Rs 1.26 crore as duty drawback. The fraudulent claims had reported taken place between 2014 and 2018.

The CBI has registered cases under Section 120 b (criminal conspiracy) and IPC 420 (cheating) of the IPC along with provisions of the Prevention of Corruption Act.

Subsequent to availing the duty drawbacks, these firms had not received any foreign remittances as corresponding export proceeds to their bank accounts and thereby cheated the Govt. of India, noted a CBI FIR