2 weeks ago
DRI Uncovers Rs 2,500 Crore Areca Nut Import Fraud
Some people in India like to chew areca nuts, which are also called betel nuts.
These nuts are usually brought into India from other countries, and when they come from places like Indonesia, Thailand, or Malaysia, the government charges a big tax on them.
But some cheaters wanted to avoid paying that tax.
They pretended the nuts came from Bangladesh, a country whose nuts are allowed in without any tax because of a special agreement between South Asian countries.
Government detectives called the Directorate of Revenue Intelligence watched these importers for a whole month.
They found out that the cheaters had avoided paying more than two thousand five hundred crore rupees in tax, which is a huge amount of money.
Nine people have been arrested for this trick.
The detectives also took about 160 tonnes of the nuts and about 75 lakh rupees in cash.
The government has also stopped a company that helps people bring goods into the country from doing its work.
Now the cheaters will have to face the law for their dishonest plan.
The Directorate of Revenue Intelligence (DRI) dismantled a network importing Southeast Asian areca nuts into India falsely declared as Bangladeshi origin to claim concessional duty benefits under SAFTA.
The investigation has so far revealed a potential revenue loss of more than Rs 2,500 crore to the Indian exchequer.
Nine persons have been arrested following a month-long intelligence-led operation.
Simultaneous searches were conducted at premises in Kolkata and Visakhapatnam, with about Rs 75 lakh in cash and 160 metric tonnes of areca nuts seized.
The licence of a Customs Broker firm responsible for clearing most of the fraudulent areca nut imports has been suspended.
- Who
- The Directorate of Revenue Intelligence (DRI), under India's Ministry of Finance, conducted the operation; nine persons were arrested.
- What
- Dismantled a network that imported Southeast Asian areca nuts into India by falsely declaring them as Bangladeshi origin to fraudulently avail duty benefits under the South Asian Free Trade Area (SAFTA).
- Where
- India; searches were conducted in Kolkata and Visakhapatnam, with the Ministry of Finance announcing the findings in New Delhi.
- When
- Following a month-long intelligence-led operation; specific dates were not stated in the articles.
- Why
- Syndicates sought to evade the 100 per cent Basic Customs Duty on areca nuts by exploiting the full duty exemption available to eligible Bangladeshi imports under SAFTA.
Key facts
- Investigating Agency
- Directorate of Revenue Intelligence (DRI)
- Estimated Revenue Loss
- More than Rs 2,500 crore
- Arrests
- 9 persons
- Cash Seized
- Approximately Rs 75 lakh
- Areca Nuts Seized
- About 160 metric tonnes
- Basic Customs Duty on Areca Nuts
- 100 per cent
- Trade Agreement Misused
- South Asian Free Trade Area (SAFTA)
- Searches Conducted At
- Kolkata and Visakhapatnam
Quotes
Finance Ministry spokesperson
Official statement from India's finance ministry
“While they were importing areca nuts originating and sourced from Indonesia, Thailand, Malaysia and other South‑East Asian countries, they were mis‑declaring the country of origin of areca nuts imported into India as Bangladesh.”
rediff.com











