DRI Unearths ₹115 Crore Export Incentive Fraud Spanning Mumbai and Pune; Two Arrested

The Directorate of Revenue Intelligence (DRI) has apprehended two individuals in connection with a ₹115 crore export incentive scam, officials confirmed on Wednesday. Those arrested include a Mumbai-based man identified as the “mastermind” and a customs broker who allegedly facilitated the scheme. According to the DRI, the syndicate was involved in fraudulently availing duty drawback and RoSCTL benefits by exporting misdeclared and highly overvalued garments to African countries. Multiple dummy Importer-Exporter Codes (IECs) were used from the Inland Container Depot (ICD) in Talegaon, Pune, as part of this elaborate operation, officials revealed.

Acting on specific intelligence inputs, DRI officers intercepted two consignments linked to the fraudulent exports. A detailed examination of these shipments uncovered that low-quality and misdeclared garments were being exported at highly exaggerated values. This led to searches across eight different premises in Mumbai. Preliminary investigations revealed that at least 14 IECs used in the operation were registered under fictitious names and were found to be bogus. Officials further confirmed that all export documentation and invoices were orchestrated by the Mumbai-based mastermind. Digital evidence, including fake invoices, was also seized during the searches.

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The investigation uncovered that the accused syndicate procured low-quality goods from local markets in Mumbai, Kolkata, and other cities without proper invoices or e-way bills. These goods were then exported after being overvalued by nearly five to six times their actual worth. By using this strategy, the group fraudulently claimed export incentives. As per DRI’s statement, the scheme allowed them to obtain drawback benefits worth approximately ₹18.74 crore and RoSCTL benefits of nearly ₹96 crore, bringing the total fraud amount to ₹114.74 crore. Officials noted this was a planned and well-executed operation.

The DRI confirmed that the mastermind behind the racket, who supervised all documentation and export arrangements, has been arrested along with a customs broker who played a supporting role. The broker allegedly received commissions for processing these fraudulent exports. The probe has highlighted how the syndicate exploited government incentive schemes designed to support genuine exporters. Duty drawback refunds duties on imported raw materials used in exported goods, while RoSCTL provides rebates on central and state levies. Further investigation is currently underway to track the wider network and identify additional accomplices in the fraud.