Drawback scam: DRI arrests Howrah man

MUMBAI: Directorate of Revenue Intelligence (DRI) sleuths have arrested a 40-year-old man in connection with a ₹50-crore duty drawback scam.

The accused, identified as Pawan Jaiswal, hails from West Bengal’s Howrah. He was nabbed soon after he landed at Delhi airport from the US and was brought to the city.

Duty drawback is a refund of excise or import duty paid on goods that are exported.

DRI’s Mumbai zone suspects Jaiswal is a key member of the syndicate. Last year, the agency developed intelligence about a group of five businessmen from

Haryana and Uttar Pradesh, who export silk fabrics, carpets and other yarns. These five allegedly exported goods to the US after gross overvaluation to get higher duty drawback and subsequently the same goods were imported back to India in the names of different entities.

With this method, the five fraudulently got duty drawback amounting to ₹50 crore, agency sources said. During the investigation, the DRI Mumbai discovered the role of Jaiswal. After he failed to appear before the agency for questioning, a look out circular was issued against him last year.

On Wednesday, when he arrived at Delhi airport, immigration officials nabbed him and handed over him to the DRI officials. They took his transit remand from a local court and brought him to Mumbai on Friday.

“Jaiswal is a key person in handling the import and export of goods in the US and is part of the syndicate. He is an employee of Shobha Woolens Private Limited. He is aware of the method of gross overvaluation of the items during their export from India for the purpose of availing of ineligible higher duty drawback and clearance of those goods in the US. He is also aware of the fraudulent activities of the exporters in India as well as importers in the US,” a source said.