DRI Busts Areca Nut Import Racket; Rs 2,500 Cr Loss Alleged

According to the DRI, intelligence gathered during a month-long operation suggested that certain syndicates were exploiting SAFTA provisions on a large scale. They were allegedly sourcing areca nuts from Indonesia, Thailand, Malaysia and other South-East Asian countries but mis-declaring the country of origin as Bangladesh when importing them into India.

Following the inputs, the DRI conducted simultaneous searches at multiple premises linked to importers, Customs Brokers and Importer Exporter Code (IEC) holders in Kolkata and Visakhapatnam. Officers recovered incriminating documents and other evidence indicating the South-East Asian origin of the areca nuts. The agency also seized around Rs 75 lakh in cash, suspected to be proceeds from the illegal imports, along with a live consignment of about 160 metric tonnes of areca nuts.

The investigation has indicated that the syndicate allegedly routed areca nuts from South-East Asian countries through an Export Processing Zone (EPZ) in Bangladesh. The goods were then allegedly transferred into different containers and bags before being sent to India and passed off as Bangladeshi-origin areca nuts.

The syndicate is also alleged to have fraudulently obtained Certificates of Origin from Bangladeshi authorities to support the false declarations and claim SAFTA benefits. The organisers reportedly charged substantial commissions from Indian importers for arranging the routing, documentation, customs clearance and transportation of the consignments.

Further investigation is under way to establish the full extent of the network and the revenue impact.