Revenue intelligence officials arrest two persons for import tax evasion of Rs 338 crore

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New Delhi: The Directorate of Revenue Intelligence (DRI) has arrested two persons in connection with a case involving an alleged import tax evasion to the tune of Rs 338 crore.

The two accused, who were arrested on Saturday (July 10), have been sent to judicial custody till July 21.

Acting on specific intelligence, the DRI seized a consignment of 100 kg of Gold Potassium Cyanide (GPC) with a declared value of Rs 32 Crores at the Air Cargo Complex in Mumbai last week.

The consignment was being exported to Dubai by a Mumbai-based firm.

The GPC was falsely declared to be the resultant product made from the duty-free import of gold that the Mumbai-based firm was permitted to bring.

However, the exporter never manufactured any products out of the duty-free inputs that it was permitted to import. Instead, it diverted the imported duty-free gold to the domestic market at a profit, by melting and recasting it, thereby violating the rules.

To fulfill, its export obligations under the Advance Authorisation Scheme, the Mumbai-based exporter would procure the GPC from a connected firm based out of Gandhinagar, which was otherwise in the business of Solar Power Energy Solutions.

The Gandhinagar firm had imported this GPC in the previous week from Indonesia by claiming benefits of the 0% duty concessions available under the ASEAN India Free Trade Agreement (AIFTA).

The GPC which was exported to Dubai was moved again to Indonesia to be supplied back to Mumbai company through its linked concern at Gandhinagar, thereby demonstrating and establishing a deliberate and illicit cyclical sequence of supply of the same goods, said DRI.