DRI arrests a man from Howrah in connection with a 50-crore duty drawback scam

Detectives from the Directorate of Revenue Intelligence (DRI) have apprehended a 40-year-old man in connection with a Rs. 50-crore duty drawback scam.

Pawan Jaiswal, the accused, is from West Bengal’s Howrah district. He was apprehended shortly after arriving in Delhi from the United States and brought to the city.

Duty drawback is a refund of excise or import duty paid on exported goods.

Jaiswal is a key member of the syndicate, according to DRI’s Mumbai zone. Last year, the agency gathered information on a group of five Haryana and Uttar Pradesh businessmen who export silk fabrics, carpets, and other yarns. These five allegedly exported goods to the United States after gross overvaluation in order to obtain a higher duty drawback, and then imported the same goods back into India under the names of different entities.

According to agency sources, the five fraudulently obtained duty drawback totaling Rs 50 crore using this method.

During the investigation, the DRI Mumbai discovered Jaiswal’s role. Last year, a lookout circular was issued against him after he failed to appear before the agency for questioning.

When he arrived in Delhi on Wednesday, immigration officials apprehended him and handed him over to DRI officials. On Friday, they took his transit remand from a local court and brought him to Mumbai.

“Jaiswal is a key person in handling the import and export of goods in the US and is part of the syndicate. He is an employee of Shobha Woolens Private Limited. He is aware of the method of gross overvaluation of the items during their export from India for the purpose of availing of ineligible higher duty drawback and clearance of those goods in the US. He is also aware of the fraudulent activities of the exporters in India as well as importers in the US,” a source said.

His associates are being sought by the investigators. Jaiswal has been charged under the Customs Act.