DRI blows lid off Rs 2,200 crore scam; asks CBI, ED to probe

A probe by the Directorate of Revenue Intelligence (DRI) has revealed that a city-based import-export firm, dealing in a range of consumer goods, allegedly remitted funds to the tune of Rs 2,232 crore to Singapore bank accounts as payments towards imports worth Rs 25 crore only. Suspecting of a money-laundering racket and the collusion of unidentified officials of the five bank branches where the transactions were done, the DRI has sought probes by the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI).

The transactions, which occurred during November 2015 to March this year, allegedly used fraudulent documents required for the remittances. Besides, the invoices and entry bills related to the transactions may be dubious, according to the source.

The DRI has asked the ED to probe into the alleged fraudulent transactions and violation of forex rules. At the same time, the agency has also asked the CBI to investigate the role of bank officials who allowed the remittances. These officials allowed multiple transactions amounting to Rs 2,232 crore, while the original transaction under the Import Export (IE) Code was of Rs 25 crore. The IE is a mandatory registration required for the import/export of goods and services to and fro India. Details of the IE registration are available on a government website — icegate.gov.in.

“The banks should not have allowed remittances of over Rs 2,200 crore against imports worth Rs 25 crore without verifying the IE code. Hence, the transactions were allowed by corrupt/negligent bank officials,” claimed the source in the DRI.

According to the source, the DRI suspects that the accused firm is a front for the racket’s masterminds. The DRI initially suspected the involement of three officials of the import-export firm. However, a probe later revealed that they were not involed in the racket. They were later identified as a civic sweeper, a street-side hawker and a movie-theatre staff. “When we began investigation, we came across names of a few officials of the firm. However, records on three of them, residents of Thane and Govandi, turned out fake. While the records showed them as firm officials, they turned out to be a civic sweeper, a movie theatre employee and street-side hawker,” said a DRI source.

The DRI suspects that the racket’s orchestrators could be allegedly associated with the jewellery business. “While four of the five bank branches, where the illegal transactions took place, are located around the Opera House area, the fifth one is located at Kanjur Marg. The ED and CBI probe will find out the real conspirators,” said the source. Four out of these five banks are public-sector entities.