Dri To Probe Customs Irregularities In Deals With Chitalias

The DRI will investigate whether any of the exports undertaken through as many as 1,000 transactions had benefited from the various export promotion schemes.

A preliminary DRI investigation is, in fact, already underway.

Government sources said the plan of action for investigating the alleged customs violations had been chalked out two months ago at a high level meeting convened by revenue secretary N K Singh, which was attended by top officials of the Economic Intelligence Bureau (EIB), the Enforcement Directorate (ED) and the DRI.

As the primary charge against ITC was that of Fera violations, it was decided that the investigations would be started by the enforcement directorate, which would later hand over relevant information to the directorate of revenue intelligence.

 

Sources said the DRI may now step into the investigations as the ED has been able to make considerable headway.

At the meeting convened by Singh, a probe into probable income tax evasions by ITC was also taken up.

The income tax investigations would have helped determine whether any tax benefits were claimed by the company as a result of the allegedly inflated exports.

The meeting was held after the Chitalias provided the EIB with documents on alleged violations in the deals they had with ITC.

After studying the documents, the EIB forwarded them to the enforcement directorate which had, in the meantime, conducted some preliminary investigations.

The DRI has already started making some inquiries and will undertake detailed investigations in the near future, a senior government official said.

A team of Calcutta-based officials of the enforcement directorate is scheduled to leave for Singapore today to seek details on ITC Globals alleged role of in the case. The team is expected to return early next week.

According to highly placed government sources, several senior ITC officials had been under surveillance at different parts of the country for nearly a week prior to the raids.