VIJAYAWADA: Enforcement Directorate (ED) has provisionally attached immovable properties worth Rs 24.13 lakh, including residential properties belonging to M Hari Babu, the proprietor of Bhavani Diamond Tools.
A case was filed against Hari Babu under the charges of undervaluation with subsequent short payment of customs duties on Saturday. The ED officials estimated that Hari Babu evaded customs duties to the tune of around Rs 2 crore.
In the investigation carried out by ED, it was revealed that the accused intentionally imported the “Saw Blanc and Saw Blade” in the name of Bhavani Diamond Tools, collaborated with the representatives of Overseas suppliers of China, with an intention to short pay the customs duties against the goods. He also fabricated a second set of invoices with the lower value of the goods purchased and submitted the same to customs at the time of import.
In addition to this, the ED officials also found that Hari Babu manipulated the prices of imported goods by lowering sale prices to align with lower values, which were declared to the customs at the time of import. He collected the differential value of sales in the form of cash.
“Subsequently, Hari Babu in terms of their prior arrangement with the overseas suppliers of China, paid the differential values (between the original value and the values declared to customs for payment of customs duties) to the representatives of the Overseas suppliers at Ongole or Chennai in cash,” said the Enforcement Department officials. Further investigation is in process.