DRI arrests Kolkata businessman for Rs 40 crore IGST fraud

The Directorate of Revenue Intelligence on Friday said it has arrested a businessman in the city in connection with an alleged Rs 40 crore IGST refund fraud in which the accused garnered money by exporting inferior quality chewing tobacco at highly inflated prices.

The accused has been exporting the goods to Thailand, Singapore and Dubai, a statement of the agency said. Acting on a tip-off, the DRI personnel have seized three consignment of 9,000 kg of goods declared to be chewing tobacco, it said.

The preliminary investigation revealed that the businessman through his two firms had exported around 23 such consignments of chewing tobacco at inflated prices to buyers in Singapore and Dubai since February, 2019.

"He had already obtained undue refunds of IGST and cess to the tune of Rs 28 crore. After DRI intervention, refund of around Rs 13 crore was withheld," the statement said.

The accused has created a chain of fictitious purchases of the goods from various traders in Kolkata, Delhi and Ranchi, the agency sources alleged.