DRI Busts Areca Nut Import Racket; Rs 2,500 Cr Loss Alleged
The DRI has dismantled a network allegedly importing South-East Asian areca nuts as Bangladeshi-origin goods to claim SAFTA duty benefits, with potential revenue loss put at over Rs 2,500 crore.
New Delhi: The Directorate of Revenue Intelligence (DRI) has dismantled a major network allegedly involved in illegally importing South-East Asian areca nuts into India by falsely declaring them as Bangladeshi-origin goods to fraudulently avail concessional duty benefits under the South Asian Free Trade Area (SAFTA), the Ministry of Finance said on Sunday.
The investigation has so far indicated a potential revenue loss of more than Rs 2,500 crore. Nine persons have been arrested in connection with the case.
Import of areca nuts into India attracts a Basic Customs Duty (BCD) of 100 per cent. Eligible imports originating from Bangladesh can receive full customs duty exemption under SAFTA, subject to compliance with the prescribed Rules of Origin criteria.
