CHENNAI: The green peas import scam detected by the Directorate of Revenue Intelligence (DRI) two weeks ago is not the only major case where the alleged collusion of Chennai Customs officers and fraudsters has been found. Customs' own intelligence wing has dug up a case where Sandeep Kumar Chorasiya, an ex-serviceman from Indian Air Force working as appraiser in Chennai Seaport Customs, allegedly took several crores of rupees as bribe from multiple companies to help them evade customs duty due under the Export Promotion Capital Goods (EPCG) scheme.
Chorasiya was arrested in May last year under Section 135 and 136 of Customs Act and his house was searched. He was released on bail a month later and is currently under suspension for a year, sources added.
According to court filings, Chorasiya forged records and created a document trail to make it seem like the companies had legally paid the duties, the investigation said. In a bid to cover his tracks, he created an alter ego Ravindra Sethu for his interactions with these companies, which only briefly delayed his identification as the alleged mastermind. As per conservative estimates, the bribe collected by Sethu would at least be Rs.100 crore, a source said. The case was recently handed over to the CBI.
Under the EPCG scheme, industries are allowed to import capital goods at zero customs duty under the condition of manufacturing products meant for export. For importers who failed to export the required quantum of manufactured products, called the Export Obligation (EO), the Director General of Foreign Trade (DGFT) last year announced an amnesty scheme, under which they were offered exemption from penalties and other legal action, provided they pay the customs duty they should have originally paid while importing the capital goods.
Chorasiya allegedly obtained details of these defaulting firms, contacted them and promised them to help evade payment of the duty in return for a 30% cut as his "fee". He promised to procure from Customs the Export Obligation Discharge Certificate (EODC), duty payment challans, official bank guarantees and certificates from the DGFT to show that the duty had been properly paid.
‘Customs’ closure letter obtained with forged docus’
For instance, a Chennai-based manufacturer contracted by Indian Railways for many projects including the Vande Bharat train, allegedly paid Rs 50 lakh bribe to Chorasiya to evade a Rs 1.66 crore duty payment. Customs found that though no duty was paid, a closure letter under the amnesty scheme had been issued by DGFT. Verification of records showed that it had been obtained using forged documents which included the challan.
The customs probe found that electronic stamps of the assistant commissioner of the Customs EODC section, the letterhead of the section and challans were forged. Contradictory file numbers were also found in applications submitted under the amnesty scheme. Entries in the EODC section register were forged with unknown signatures as though department officers had reconciled the documents and closed the case after verification.
When the officials smelled fraud based on the irregularities and contradictions in the documents, they could not immediately figure out that Chorasiya was behind it. They began the probe with the companies that seemed to have fraudulently obtained the clearance. The companies reportedly confessed to paying the bribe to one Sethu. Many said they met him at a now demolished hotel on Cathedral Road in Chennai. On suspicion that it could be Chorasiya since he was suspended a few months before on similar charges, the officials showed his picture to the personnel of these companies, all of whom recognised him as Sethu.
TNIE has a list of around 10-15 companies and the alleged bribe amounts paid to Chorasiya/Sethu. During investigation, customs dug up records of more than 500 companies from across Tamil Nadu and neighbouring states that Chorasiya allegedly contacted, sources said, adding that there is evidence of whatsapp conversations of bribes demanded and paid. An investigator said there was evidence of cash payments to hawala agents as well. Customs alleged that he demanded bribes from some companies and threatened to otherwise freeze their accounts for failing to pay customs duty.
Recalling the earlier misconduct, Customs said Chorasiya was suspended six months from EODC sections.
Chorasiya, in his bail petition to the court, had said that the allegations made in the case were baseless. He had further said he had been made a scapegoat and was arrested to protect the higher authorities. He, however, had promised to cooperate with the probe.