Kolkata, Jul 26 (IANS): The Directorate of Revenue Intelligence (DRI) on Thursday said it has busted a smuggling racket of imported readymade garments by a city-based syndicate and also detected customs duty evasion to the tune of Rs 25 crore.

The agency arrested four persons including two masterminds of the syndicate.

"DRI busts a smuggling racket of imported readymade garments by a Kolkata-based syndicate operating through different ports across the country. Imports of highly undervalued and mis-declared readymade garments from China and Hong Kong SAR into India involving evasion of customs duty of at least Rs 25 crore was detected," a statement said.

Acting on tip-off, the agency intercepted five consignments, of the syndicate including companies like Vikash Enterprises, Rohit Enterprises, Rupal Creation, Nil Kamal Singh (Chandra Associated), R.K. Enterprise, Mahalaxmi Retailers Pvt Ltd and Narayan Refractories.

These consignments having a total market value of about Rs 20 crore against the total declared value of Rs 1.5 crore have been seized, the statement said.

Two masterminds, Kamlesh Singh and Rajesh Singh, were arrested and both were produced before the court. They have been remanded to judicial custody till August 8.

A follow-up inquiry was conducted in Mumbai at a certain premises, owned by another accused, Brijesh Kumar Singh, who as a member of the syndicate was associated with the activities of the aforementioned firms, the agency said.

Rs 77 lakh was found from the premises, which admittedly was the sale proceeds of such mis-declared goods, which was consequently seized.

Brijesh, along with another member of the syndicate, Amaresh Rai, were also arrested.

During interrogation, they admitted their involvement in the fraudulent import of mis-declared goods in respect of 130 consignments with a total value of over Rs 100 crore and evasion of customs duty of about Rs 25 crore, the DRI added.