Delhi bizman is held for Rs500-cr smuggling racket

The Directorate of Revenue Intelligence (DRI), Mumbai, on Tuesday arrested businessman Sunil Gupta for allegedly being involved in a fraudulent duty-free import scam of electronic components used in video compact discs (VCDs) and digital video discs (DVDs), through two fictitious firms. The DRI believes that Gupta has smuggled electronic goods worth almost Rs500 crore over the past five years.

The Delhi-based manufacturer, believed to be the supplier of over 50 per cent of electronic goods to retailing majors like Big Bazaar in Mumbai, had imported the Rs2.6 crore-consignment that arrived in the city through the Nhava Seva port.

DRI investigations revealed that the two firms, RC Industries and Singh Industries based in Parwanoo in Himachal Pradesh, on whose names the consignment arrived, were apparently non-existent. Through the clearing house agent and transporter who handled the consignment, DRI identified Gupta as the actual importer.

“The bank account of Anurag International owned by Gupta in Delhi was found to be the common link between all the fictitious firms that indulged in fraudulent imports by under declaring the goods. Even a flat purchased in Andheri by Gupta was paid for through the same bank account,” a senior DRI official said.

“Between 2000 and 2005, 1,900 consignments were imported by 37 firms operated by Gupta with a declared value of Rs50 crore. Even at a conservative estimate, the 1,900 consignments must actually be worth Rs500 crore, making Gupta one of the biggest smugglers of our time,” a DRI official said.