Multi-crore textile import scam uncovered at SEZ

INVESTIGATING a case of mis-declared textile imports at the special economic zones (SEZ), the Directorate of Revenue Intelligence (DRI) has busted a new modus operandi where goods worth at least ₹50 crore were moved out of a Chennai warehouse using documents of earlier consignments to avoid official scrutiny and payment of customs duty.

- SIDDHARTH PRABHAKAR @Chennai

The scam was detected by DRI's New Delhi unit at a Free Trade Warehouse Zone (FTWZ) in Nandiambakkam in north Chennai in January, where two directors of the warehousing firm were arrested. Similar probes were conducted in Mumbai and Gujarat ports as well. The agency found that specific types of knitted and crocheted fabrics, which are restricted for import below a minimum import price (MIP) of $3.5/kg, were misdeclared as Viscose knitted fabric and cotton knitted fabric to avoid paying customs duty.