DRI unearths import duty certificate racket worth crores

The Directorate of Revenue Intelligence (DRI) has uncovered a highly organised racket which was involved in counterfeiting of import duty exemption certificates.

The racket is believed to be worth hundreds of crores. It has also thrown up names of several established business houses.

Their roles are being probed. The gang was counterfeiting import duty exemption certificates, issued by the Directorate General of Foreign Trade (DGFT) under the Duty Exemption Passbook Scheme (DEPB).

Under this scheme the government awards import duty exemption, to a trader who has exported a certain threshold limit or more, of a listed export commodity.

These certificates are issued at the Inland Container Depot from where exports have been made and have to be claimed by the holder of the certificate at the time of making the import.

The certificates are transferable and since the duty exemption does not involve a cash component, selling off of these certificates to other traders in return for cash is a normal practice.

Two persons, who were part of this ring of highly trained counterfeiters, were arrested in Ahmedabad by DRI’s zonal unit there. “It’s a highly professional gang of criminals. They were well aware of customs procedures and had moles at the right places,” a senior DRI official said.

The racket has now triggered a nationwide exercise involving officials of DGFT, customs, excise and state police forces. Last week, DRI Ahmedabad carried out a search in communally sensitive areas of Chimanganj and Jajmou in Khanpur. It is believed that this area has a strong link in this racket.