The Directorate of Revenue Intelligence has unearthed a significant duty fraud involving areca nuts falsely claimed to originate from Bangladesh, revealing a complex scam with potential losses exceeding Rs 2,500 crore and highlighting intensified customs scrutiny on misdeclared agricultural imports.
The Directorate of Revenue Intelligence has dismantled what officials described as a large-scale duty-evasion network centred on areca nuts imported into India by falsely claiming Bangladeshi origin. According to a Ministry of Finance release, the goods were in fact sourced from countries including Indonesia, Thailand and Malaysia, then routed through an export processing zone in Bangladesh before being repacked and sent on to India as if they qualified for tariff-free treatment under the South Asian Free Trade Area arrangement. The ministry said the alleged fraud may have cost the exchequer more than Rs 2,500 crore.
The operation has led to the arrest of nine people, the seizure of about Rs 75 lakh in cash and the recovery of around 160 metric tonnes of areca nuts. Officials also suspended the customs broker licence of a firm said to have handled most of the suspect consignments. The investigation found what the ministry called fraudulent certificates of origin, along with commission payments for arranging routing, paperwork, customs clearance and transport.
Searches at multiple premises linked to importers, customs brokers and Importer Exporter Code holders in Kolkata and Visakhapatnam turned up documents and other material said to show the South-East Asian origin of the cargo. Investigators also said they uncovered evidence of hawala transfers and shell entities used to move and obscure the proceeds. The ministry said the trade scheme had distorted prices and hurt legitimate businesses as well as domestic areca nut growers.
The latest case fits a broader pattern of aggressive enforcement against areca nut smuggling and misdeclaration. In recent months, the DRI has reported seizures of areca nuts hidden in cargo described as base oil, grinding wheels, gypsum powder and industrial granules, while separate cases have involved alleged under-invoicing of Chile-origin walnuts. Taken together, the actions suggest customs officials are widening scrutiny of misdeclared agricultural and food imports, especially where import duties are high and origin-based exemptions can be abused.
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