Man held in Rs 50 cr duty drawback case by DRI

Goods were exported after gross overvaluation to get higher duty drawbacks

The suspect was intercepted by immigration authorities at the Delhi airport while traveling to the US on April 13

The Directorate of Revenue Intelligence (DRI) officials have arrested a Madhya Pradesh-based man for his alleged involvement in a Rs 50 crore duty drawback case. The DRI sources claimed that certain goods were being exported by some exporters after gross overvaluation with an ulterior motive to get higher duty drawbacks fraudulently and subsequently the same goods were imported back to India in a circular manner. The accused indulged in the export of goods declared as carpets and fabrics of silk and other yams, etc. to the US by misdeclaring the value and other particulars to fraudulently avail higher duty drawback.

According to sources, specific intelligence developed by the DRI (Mumbai) suggested that five exporters were allegedly indulging in the practice.

“Certain export consignments of the said exporters were seized by the DRI in December 2020. One of the suspects involved in the duty drawback fraud was issued several summons to appear before the DRI for recording his statement and to give evidence and documents related to the investigation. However,

the suspect never appeared and a look out circular was issued against the suspect,” said a DRI official.

The suspect was intercepted by immigration authorities at the Delhi airport while traveling to the USA on April 13.

He was brought to Mumbai the next day and a probe revealed a syndicate that had been availing ineligible higher drawbacks by routing goods in a circular manner. “He is one of the key people of this syndicate,” said the official.