The Directorate of Revenue Intelligence (DRI), Mumbai Zonal Unit, has arrested the proprietor of a Dubai-based trading firm in connection with a large-scale undervaluation scam involving imported inshell walnuts. The alleged fraud is estimated to have caused a loss of over ₹139 crore to the government exchequer.
The investigation began after the DRI received specific intelligence inputs indicating that M/s Deepak Trading Co., a Gujarat-registered firm based in Surat, was importing inshell walnuts from Chile via Nhava Sheva Port while deliberately undervaluing the goods to evade customs duties.
According to officials, the importers, in collusion with overseas entities, submitted manipulated invoices to Indian Customs authorities. Instead of presenting the genuine invoices issued by Chile-based suppliers, they relied on undervalued invoices generated by UAE-based intermediary firms. These invoices were tailored to suit the importers’ requirements, thereby reducing their tax liability.
Subsequent searches and analysis of import documentation, including invoices and export records, revealed that this systematic undervaluation resulted in the evasion of Basic Customs Duty and Integrated Goods and Services Tax (IGST) amounting to approximately ₹139.74 crore.
The DRI stated that the undervaluation ranged between 50% and 70%, significantly distorting the declared value of imported goods.
Investigators found that a Dubai-based entity, Euro Seven General Trading LLC, played a central role in the scheme by issuing undervalued invoices to multiple Indian importers. These included Dipak Kiryana Stores, Dipak Trading Co., and Angel Enterprises.
The firm’s proprietor, Makbul Ahmed Siddiq Dhoki (49), was arrested at Ahmedabad International Airport upon his arrival from the UAE.
According to the DRI, Dhoki admitted during questioning that he supplied undervalued invoices to Indian importers in exchange for commissions. These invoices were then used to misdeclare the value of goods before Indian Customs authorities.
However, Dhoki’s counsel, advocate Sujit Sahu, contested the allegations in court, asserting that his client had paid the appropriate customs duties and that the charges were unfounded.
The DRI informed the court that the accused had allegedly formatted his mobile phone and was not cooperating with the ongoing investigation. Officials further indicated that the case may involve hawala transactions and elements of international money laundering.
Emphasizing the need for deeper investigation, the agency sought custodial interrogation to trace financial flows, identify other individuals involved, and prevent destruction of evidence.
The court, after hearing the submissions, remanded Dhoki to judicial custody.
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