Daijiworld Media Network - Mangalore (SP)

Mangalore, Jun 3: The officials of the directorate of revenue intelligence, city region, have succeeded in busting a racket of export fraud. The amount involved with the fraud is put at around one crore rupees and two persons, Suresh Prabhu and Raghu Achar, have been arrested.

The accused were drawing benefit under the duty free import-export scheme under which, they exported substandard goods by preparing invoice for much higher amounts with a view claim benefits under various provisions meant for encouraging exports. They imported goods under the duty-free scheme, sold the goods to other exporters at higher rates and cheated the government by way of non-payment of duty.

The fraud came to light when the officials of the revenue intelligence inspected the container that had been meant for export to UAE on Monday June 1. The goods were stated as dresses for women, made of cotton and polyester, under the duty-free import export scheme of the government. The value of the goods was shown as one crore rupees and the name of the importer was shown as Halima Babidare Trading, Jabel Ali Free Zone, UAE. During inspection, the officials found that the quantity of dresses was far less that what was mentioned in the invoice, many of the boxes were empty and the goods found there were of substandard quality. The value of the goods was just Rs 6.25 lac and not one crore, the officials have claimed.

Both the accused were produced in the court of the chief judicial magistrate here on Tuesday June 2 and they were remanded to judicial custody, the officials stated.