DRI arrests a man in Rs.50 crore Duty Drawback Scam

The Directorate of Revenue Intelligence (DRI) Officers has arrested a a 40 year old man in connection with a Rs.50 crore Duty Drawback Scam.

The Accused, Pawan Jaiswal belongs from West Bengal’s Howrah District. He was arrested shortly after arriving from the US at Delhi Airport and escorted to the city.

Excise or import duty paid on exported products is refunded through a process known as duty drawback.

According to the Mumbai zone of DRI, Jaiswal is a Key member of the syndicate. The agency obtained data on group of five businessmen from Haryana and Uttar Pradesh who export silk fabrics, carpets, and other yarns last year. These five allegedly overvalued the items they sold to the United States in order to receive a larger tariff drawback. They subsequently reimported those same goods into India under the names of several organisations.

The five obtained duty drawback totaling 50 crore using this technique, according to agency sources.

The DRI Mumbai discovered the Jaiswal’s involvement throughout the probe. After he failed to show up for questioning at the agency last year, a lookout notice was issued against him.

When he landed in Delhi on Wednesday, immigration officers detained him and surrendered him to DRI officials. On Friday, they obtained his transit remand from a nearby court and transported him to Mumbai.

“Jaiswal is a key member of the syndicate and manages the import and export of goods in the US. He works for Shobha Woolen Private Limited. He is aware of the technique used to grossly overvalue the commodities when they are exported from India in order to qualify for higher tax drawback and clearance in the US. He is also aware of the fraudulent actions of US importers and Indian exporters,” according to a source.