A Directorate of Revenue Intelligence (DRI) team from Surat conducted raids on two export-oriented textile firms in Kohinoor market at Ring Road here on Thursday following reports that the owners were allegedly defrauding the government by claiming refund on overvaluation of their products.
Acting on a tip-off,the DRI team raided the offices and residence of Kamal Mundra and his brother Rajesh for their alleged involvement in taking benefit of Duty and Settlement Passbook Scheme of the Directorate General of Foreign Trade (DGFT).
DRI sources said that Kamal and Rajesh were operating their businesses by the name of Madhuri Impex and Madhuri Synthetics in Kohinoor market in Surat for the last one year.
Several documents seized from their residence at Bhatar and their office in Kohinoor,are now under investigation,said officials. Besides,the DRI has also seized one export container from Newport in Mumbai,destined for Dubai.
According to sources,the two brothers have been involved in such fraud for a long time.
Sources said,they purchased low-quality fabric and exported it to Dubai in huge quantities,showing higher rates to get the refund of 8.24 per cent of the total sale through the Duty and Settlement Passbook Scheme of the government.
A DRI official said on condition of anonymity that the modus operandi of both accused was to open two or three shops in the textile market area of Surat every year for export business. After the completion of one year,they would shut the shop and come up with a new firm with a new name and continue their business so that nobody could suspect them.
Incidentally,a case under COFEPOSA has been registered against Kamal in Goa and the matter is being investigated by the CBI.
Officials are now verifying the amount of export done by the two brothers through their present firm. They believe the fraud will run into crores of rupees.