VIJAYAWADA: Hyderabad Zonal Unit of the Directorate of Revenue Intelligence (DRI) seized machinery worth Rs 189 crore belongs to M/s Bramhani Industries Limited, Jammalmadugu, Kadapa, on Monday.
The defaulted integrated steel plant belongs to Gali Janardhan Reddy. Officials said a case against Bramhani Industries Limited has been under investigation with DRI for evasion of customs duty on capital goods and machinery imported by them from Chennai port in 2009 for setting up an integrated steel plant in Jammalamadugu.
“Machinery were imported by availing customs duty exemption under Exports Promotion Capital Goods scheme (EPCG) as per the provisions of Foreign Trade Policy 2009-14. But they could not complete the plant. For violations, the imported capital goods are rendered liable for confiscation under customs Act 1962. Seized imported machinery lying there was around Rs 189 crore,” said additional director general range officer.
In a statement released by DRI, it is further said under the provisions availed, the importer was required to install the imported machinery in the factory premises within six months from the date of import. The importer needs to fulfill the required export obligation equal to eight times of customs duty saved by export of goods manufactured by utilising the imported capital goods.
In the investigations conducted by DRI officials, it is revealed that the company blatantly violated the conditions of the EPCG scheme. “They have not even installed the machinery imported way back in 2009 and thus no exports have been made by them even after lapse of 8 years from the date of import,” officials said.
On being informed by DRI, action was initiated by Chennai Customs for enforcement of bond and corporate guarantee executed with them. “The importer has not paid the customs duty involved on the imported goods till date, which is around 44 crores. During the course of the investigation, the concerned personnel including Chairman of the company, admitted the said violations but failed to discharge the duty liability.