Directorate of Revenue Intelligence, Kochi, has unearthed an export fraud at R Kishin & Co of Zaveri Bazar, Mumbai.

DRI officers conducted search at various premises in Kochi and Mumbai, including the office, godown, and residence of exporter Kishin S Loungani, proprietor of the firm.

Incriminating documents and contraband goods valued at ₹12.5 crore have been recovered, according to a DRI spokesman.

₹100-cr fraud Total loss to the exchequer in this case has been put at around ₹100 crore.

Kishin Loungani was arrested on Thursday and remanded to judicial custody by the Additional Chief Judicial Magistrate (Economic Offence Court), Ernakulam.

Investigations revealed that the exporter had procured sports goods from the local open market and got it invoiced in the name of a fictitious Mumbai-based manufacturer.

These were exported to a company owned by his son in Dubai. The same goods were then re-imported through Nhava Sheva port in Mumbai in the name of another non-existent importer.

They were later shipped out of a godown and moved by road to Kochi to be re-exported again to Dubai through the Cochin port using bogus documents.

Goods ‘rotated’ The same goods were ‘rotated’ between Dubai and India even as drawback and other export promotion incentives were claimed.

During interrogation, the exporter admitted that footballs, gloves and golf balls were exported in the name of R Kishin & Co through the Cochin port under the drawback scheme and other export incentive schemes.

They were re-imported in the name of Ambe Traders, Mumbai, at very low value through Nhava Sheva port.

They would be repacked at a godown in Panvel near Mumbai. The exporter admitted to rotating the same goods again and again for fraudulently availing ineligible drawback from the year 2010.

Foreign exchange remittances on account of the exports were transferred to the UAE through hawala channels for subsequent remittances.

Related Topics
comment COMMENT NOW