MUMBAI: The Directorate of Revenue Intelligence (DRI) on Friday arrested a key conspirator in a fraudulent export case of Rs 1,800 crore where the accused connived with others using dummy exports with the intention of availing duty drawback incentives to the tune of several crores
DRI’s Mumbai unit arrested Nitin Chauhan, a resident of Bhayander. He has been sent to DRI custody. This is the third person arrested in an ongoing probe of fraud.
Last month, DRI unearthed a scam and businessmen Rajan Sarang and Prashant Modak were arrested on Saturday and a court sent them to DRI custody. During the probe, it transpired that Chauhan managed the finances, procurement of goods and shipping documents such as invoices, packing list, Import Export Code (IEC) to be used on the invoices for monetary consideration.
Chauhan, on instructions from Rajan and Modak, handled cash deals and himself admitted to have provided five to seven IEC for exporting overvaluing goods for duty drawback. Gullible people were roped in to submit KYC documents on payment of a few thousands as commission to create bogus companies and Import Export Code, a mandatory requirement for effecting exports, officials said.
The DRI had got information that a syndicate was exporting cheap goods at overvalued prices to claim duty drawbacks. Based on the information the DRI officials arrested Sarang and Modak.
Officials said Chauhanplayed a key role of coordinating between Sarang, Modak and the Import Export Code providers from Delhi, Mumbai and Surat using 124 bogus companies.
