DRI unearths ₹115 crore ‘export incentive’ fraud spanning Pune, Mumbai; 2 held

Preliminary investigations revealed that 14 IECs, identified so far, were issued in the names of fictitious individuals and were non-existent or bogus

The Directorate of Revenue Intelligence (DRI) has arrested two persons for a ₹115 crore fraud involving availment of export incentives by entities without eligibility, officials said on Wednesday.

Acting on the intelligence, the DRI intercepted two such live consignments, he said. (REPRESENTATIVE PHOTO)

Those arrested were a Mumbai-based individual, dubbed by the central agency as the “mastermind” of the fraud, and a customs broker. The DRI had specific intelligence about a syndicate fraudulently availing duty drawback and RoSCTL benefits by exporting misdeclared and overvalued garments to African countries by using several dummy IECs (importer-exporter codes) from ICD (inland container depot) Talegaon in Pune, an official said.

RoSCTL, or rebate of state and central taxes and levies scheme, serves as a key incentive framework for Indian exporters.

Acting on the intelligence, the DRI intercepted two such live consignments, he said.

Examination of the consignments revealed misdeclared and inferior quality goods were being exported at grossly inflated values, according to the official.

Simultaneous searches were conducted at eight premises in Mumbai, said a DRI statement.

The mastermind, who has orchestrated the whole scheme, was arrested along with a customs broker, who was a complicit in the fraud and received commission for processing such exports, it stated further.

Further investigation in the fraud was underway.

Duty drawback is a government scheme formulated to refund duties and taxes paid on imported inputs used in the production of exported goods.

(With agency inputs)