The Enforcement Directorate (ED) has searched 17 premises across Mumbai and Nagpur under Prevention of Money Laundering Act, covering office and residential premises of various persons involved in smuggling of betel nuts of Indonesian origin.
The smuggling of the Indonesian origin betel nuts was being carried out mostly via the Indo-Myanmar Border.
The ED initiated investigation on the basis of a CBI FIR registered in Nagpur on March 5 last year under Indian Penal Code Sections relating cheating, forgery and criminal conspiracy besides provisions of the Prevention of Corruption Act.
As per the FIR, many Nagpur-based traders in connivance with various public servants, were indulging in smuggling of substandard Betel Nuts/Areca Nuts of Indonesian Origin and falsely claiming the same to be originating from member countries of South Asia Preferential Trading Agreement (SAPTA) and South Asia Free Trading Agreement (SAFTA) by using Fake Certificates of Origin, and by using bogus and undervalued bills/invoices. This caused evasion of Customs Duty and loss to the Government. Further, the Directorate of Revenue Intelligence had also investigated the illegal smuggling of betel nuts and issued eight Show Cause Notices.
“ED investigation has revealed that there is a well organized syndicate of suppliers of Indonesian Betel Nut, Commission Agents, Logistic providers, Transporters, Hawala Operators and Buyers who were smuggling Indonesian Betel Nut into India via the Indo-Myanmar Border. Fabricated domestic invoices were made and transported smuggled betel nuts to Nagpur and Gondia districts of Maharashtra,” the agency said in a statement.
During ED searches, unaccounted Betel Nut of 289.57 MTs valued at roughly Rs 11.5 crore has been seized under PMLA at Nagpur. The godown owner could not supply the KYC (Know Your Customer) of the Traders who deposited the Betel Nut, and failed to furnish any supporting documentation like Stock Register, Bills, Invoices, Quality Certificate and Transport documents among others.
The ED has seized Rs 16.5 lakh in cash and various incriminating documents and digital devices. Further investigation is going on, it added.