HYDERABAD: An international diesel smuggling racket found to be illegally importing diesel from Dubai, and operating from Kakinada to supply diesel to the two Telugu States and Tamil Nadu, was busted by the sleuths of Directorate of Revenue Intelligence. The end users of the fuel were traced to Hyderabad too. Though around 3 lakh litres of diesel worth Rs 1 crore was seized, the total worth of the diesel smuggled in the past six months amounts to Rs 17.7 crore and the tax evaded thus amounts to Rs 8 crore, putting the total cost at Rs 25.7 crore.
According to Finance ministry, the AP State intelligence department provided inputs to DRI, Hyderabad, about the fuel being smuggled into India in the guise of ‘mineral spirit’ by certain Kakinada and Chennai based operators. Following the tip off, DRI team in Chennai and Hyderabad carried out search operations at various places across Andhra Pradesh and Tamil Nadu from April 17 onwards.
“In searches conducted at two container freight stations in Chennai it was found that 14 containers imported in the name of M/s SAF Petroleum and M/s Aditya Marine landed at Sanco CFS, Chennai and Gateway CFS, Chennai, where the goods were declared as mineral spirit,” a statement from the finance ministry said. During the raids, the DRI seized around 3 lakh litres of diesel worth Rs 1 crore.
Four persons, including the mastermind from Kakinada and a hawala operator, have been arrested on Friday. Prima facie, the sleuths have traced several end users of the illegally transported diesel in several parts of the city, and also to various districts in the state.
A senior official from DRI told Express that the kingpin of the racket had set up fake companies in Dubai in the name of his driver, through which he purchased the diesel there. “It was being sent to Chennai on a weekly basis,” he added.
Classifying the fuel as ‘mineral spirit’ and declaring its value lesser by 60 per cent, the kingpin had been earning huge profits in the illegal trade. “The probe revealed that the diesel was being supplied to petrol dealers, industries, crushers and transport offices, based on pre-orders,” said the official.