In a significant crackdown on high-value import fraud, the Directorate of Revenue Intelligence (DRI) has made a third arrest in a major luxury furniture smuggling case. The agency apprehended a director of a Hong Kong-based supplier company for allegedly orchestrating a scheme that caused a loss of approximately Rs 30 crores to the Indian exchequer.
Systematic Undervaluation and Document Fraud Uncovered
The arrest follows intensive investigations that revealed a pattern of systematic mis-declaration and document manipulation. According to DRI officials, the accused was part of a network that deliberately undervalued consignments of luxury furniture being imported into India. This sophisticated fraud was designed to evade legitimate customs duty, Integrated Goods and Services Tax (IGST), and Social Welfare Surcharge.
During coordinated searches conducted at multiple premises linked to the case, officers seized a trove of incriminating documents. These records provided concrete evidence of the calculated undervaluation and falsification aimed at bypassing tax laws. The DRI's probe indicates that this was not an isolated incident but a well-planned operation to avoid paying substantial government revenues.
Previous Arrests and Ongoing Probe
This Hong Kong-based director is the third individual to be taken into custody in this unfolding case. Earlier, in May of this year, the DRI had arrested two other accused: Rizwan Iqbal Chunawala and Sajid Hanif Jada. The latest arrest points to the international dimensions of the scam, involving suppliers based outside India.
The investigation continues to trace the entire chain of this alleged duty evasion network. Authorities are examining the roles of other entities and individuals who might have facilitated the illegal import and subsequent sale of the high-value furniture within the domestic market.
Financial Impact and Legal Consequences
The estimated financial loss of Rs 30 crores underscores the scale of the fraud perpetrated against the government. Such evasion not only deprives the state of crucial resources for public welfare but also creates an uneven playing field for honest importers and businesses who comply with tax regulations.
The DRI, which functions under the Central Board of Indirect Taxes and Customs (CBIC), has been intensifying its actions against commercial fraud involving imports. This case highlights the agency's focus on high-value goods where the potential for duty evasion is significant. The accused will face legal proceedings under the relevant sections of the Customs Act, which prescribes severe penalties, including imprisonment, for duty evasion.
