DRI busts alleged areca nut import network over SAFTA duty fraud worth over ₹2,500 crore

The DRI seized Rs 75 lakh in cash and 160 metric tonnes of areca nuts, while nine people were arrested in a probe into alleged SAFTA duty fraud.

New Delhi: The Directorate of Revenue Intelligence (DRI) has busted a network allegedly involved in illegally importing areca nuts into India and causing a potential customs duty loss of more than Rs 2,500 crore.The Finance Ministry said nine people have been arrested so far in connection with the case.Origin Falsely DeclaredAccording to the ministry, areca nuts sourced from Indonesia, Thailand, Malaysia and other South-East Asian countries were allegedly being falsely shown as originating from Bangladesh.The alleged misdeclaration allowed importers to claim customs duty benefits available under the South Asian Free Trade Area (SAFTA) agreement. DRI Drug Crackdown: Five Arrested With Methamphetamine Worth ₹7.10 Crore In Bhopal, NoidaAreca nut imports into India normally attract Basic Customs Duty of 100 per cent.However, eligible areca nuts originating from Bangladesh can receive full customs duty exemption under SAFTA if they meet the prescribed Rules of Origin conditions.DRI Detects NetworkIntelligence gathered by the DRI indicated that certain groups were allegedly claiming SAFTA benefits on a large scale despite sourcing areca nuts from South-East Asian countries.Following the information, DRI officers carried out simultaneous searches at several locations linked to importers, customs brokers and Importer Exporter Code (IEC) holders in Kolkata and Visakhapatnam.Officials recovered documents and other evidence that allegedly established the South-East Asian origin of the imported areca nuts. Mumbai Crime: DRI Busts Alleged Illegal Tramadol Export Network, Seizes 2 Lakh Tablets Meant For Nigeria; 3 Key Accused ArrestedCash, Areca Nuts SeizedDuring the operation, DRI officers seized around Rs 75 lakh in cash, which authorities suspect was linked to the sale of illegally imported goods.Officials also seized around 160 metric tonnes (MT) of areca nuts as part of the investigation.The Finance Ministry said the investigation conducted so far indicates that the alleged fraudulent imports have caused customs duty losses exceeding Rs 2,500 crore in recent years.The customs broker's licence connected with the case has also been suspended.Further investigation into the alleged import network and the people involved is underway.