Driving Naari Programme launched in Chandigarh
* Ludhiana-based cycle parts exporter in trouble
Chandigarh, A Ludhiana-based cycle parts exporter is in trouble with the Enforcement Directorate (ED) detecting Rs 15 crore ‘hawala’ transactions and an export duty drawback scam.
About 40-50 export houses and firms in Punjab, particularly those in Ludhiana and Jalandhar, are under the ED lens for claiming “bogus” duty incentive drawback by sending empty containers or by submitting exaggerated bills or by “under-valuing” imports to avoid customs duty. The growing practice is not limited to one trade. It is widely prevalent among exporters of garments and machinery parts.
Two ED teams led by Assistant Directors Manoj Sharma and PK Bharal conducted simultaneous raids on the residence and business premises of Ludhiana-based cycle exporter and owner of Nice Exports Sanjiv Gupta. The raids, that started at 2 pm, continued till late in the night. Gupta was away to New Delhi. The raiding team recovered cash worth over Rs 55 lakh from Gupta’s residence. It also detected a ‘hawala’ and export incentive duty drawback scam worth Rs 15 crore.
Sources said Gupta was allegedly showing export of bicycle parts (under the names of different brands) to Europe and Dubai “only on paper” and was involved in bogus drawing of central export duty incentives running into crores. The Centre’s export duty drawback incentives range between 5 per cent and 10 per cent of the export value.
A perusal of the seized documents revealed Gupta’s modus operandi. His firm made “bogus” exports and received cheques from countries of export to comply with the Reserve Bank of India (RBI) requirements.
The “ill-gotten” money was routed back to foreign countries through “hawala” transactions against cheques and multiple traveller cheques with the help of Jalandhar-based owners of Happy Forex.
In 2012, the ED had seized cash worth Rs 1.25 crore from the premises of Happy Forex as well as documents pertaining to ‘hawala’ transaction beneficiaries across Punjab and neighbouring states.
Karimpuri seeks probe
Phagwara: The Bahujan Samaj Party has demanded a probe by a Punjab and Haryana High Court Judge into the drug racket in the state. Party president Avtar Singh Karimpuri said it should be ensured that the state government did not influence the course of inquiry. He claimed that the police was going only after the small fish.
He alleged that atrocities on Dalits in the state was on the rise. Condemning the killing of two Dalit brothers in a fake encounter near Jamalpur in Ludhiana, he demanded a compensation of Rs 25 lakh for the aggrieved family.
Karimpuri described the government decision to transfer 125 MBBS seats reserved for SCs to students in the general category as “anti-Dalit.” — Ashok Kaura
Modus operandi
The exporter was involved in bogus drawing of central export duty incentives running into crores of rupees
The drawback incentives range between 5 per cent and 10 per cent of the export value
The firm would make “bogus” exports and receive cheques from countries of export
The money was then routed back to foreign countries through “hawala” transactions against cheques
All this was done with the help of Jalandhar-based owners of Happy Forex
About export duty drawback
It is an incentive to exporters to promote exports and to neutralise the impact of duties such as excise and customs to help them compete in the international market. The central government re-imburses export duty up to 10 per cent of the export value.
