CBI books six for duty drawback incentive fraud

The case has been registered on the basis of a preliminary inquiry initiated in November

The Central Bureau of Investigation (CBI) has booked six persons for allegedly claiming duty drawback incentives without eligibility, in connection with the exports of 37 shipments through the Inland Container Depot in Tughlakabad, Delhi.

The accused have been identified as Feroz Ghachi, Mohammed Rafique Abdul Sheikh, Rupesh Tukaram Chavan, Prasant Parkar, Amil Fruitwala and Juzar Angoothiwala. The case has been registered on the basis of a preliminary inquiry initiated in November last year against the suspects and unknown officials in Delhi.

The agency found that in 2010, Rafique Sheikh had floated a company, Cairo Collection, and also got an import-export code in its name. However, the company was not engaged in any business activity for almost six years.

In 2016, at the instance of Feroz Ghachi, Rafique Sheikh allegedly opened a current account in the company’s name and authorised an employee to operate it. He also allowed Feroz Ghachi to export goods by using the Cairo Collection’s import-export code, for which he would get his share of the income, as alleged.

The same year, some foreign nationals visiting India bought household items from different parts of the country. They paid for the goods in Indian currency and got the 37 shipments exported through Feroz Ghachi to Somalia and other places. He incurred all the related expenses, including warehouse rent and transportation charges.

Although the accused knew that he was not eligible for duty drawback incentives on such exports, where the buyer had already paid in cash in India, he claimed it. The incentives were sanctioned and ₹1.35 crore paid into the account of Cairo Collection.

In order to retain the incentives, Feroz Ghachi and his accomplices prepared a series of fake documents, for which they forged the signatures of Customs officials and foreign passengers, while invoices and Bills of Lading were also created. The accused also tried to establish that payments were made in foreign currency for the supplied goods.

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