New Delhi, August 16, 2026 (Yes Punjab News)
The Directorate of Revenue Intelligence (DRI) has busted a major alleged racket involving the illegal import of South-East Asian areca nuts into India by falsely declaring them as goods originating from Bangladesh to claim concessional customs duty benefits under the South Asian Free Trade Area (SAFTA), the Ministry of Finance said on Sunday.
The investigation has so far indicated a potential revenue loss of more than Rs 2,500 crore, with nine people arrested in connection with the case.
Areca nut imports into India attract a Basic Customs Duty (BCD) of 100 per cent. However, eligible imports originating in Bangladesh can qualify for full customs duty exemption under SAFTA, provided they meet the prescribed Rules of Origin requirements.
According to the DRI, intelligence gathered during a month-long operation indicated that syndicates were allegedly exploiting these provisions on a large scale. The groups were reportedly procuring areca nuts from Indonesia, Thailand, Malaysia and other South-East Asian countries, while declaring Bangladesh as their country of origin when importing the consignments into India.
Acting on the inputs, DRI teams conducted simultaneous searches at several premises associated with importers, Customs Brokers and Importer Exporter Code (IEC) holders in Kolkata and Visakhapatnam.
The searches led to the recovery of documents and other evidence allegedly establishing the South-East Asian origin of the consignments. The agency also seized around Rs 75 lakh in cash, suspected to be proceeds from the illegal imports, besides intercepting a live consignment containing approximately 160 metric tonnes of areca nuts.
The investigation found that the syndicate allegedly routed the nuts from South-East Asian countries through an Export Processing Zone (EPZ) in Bangladesh. The consignments were subsequently transferred into different containers and bags before being sent to India and presented as Bangladeshi-origin goods.
The network is also alleged to have fraudulently obtained Certificates of Origin from Bangladeshi authorities to substantiate the false declarations and avail SAFTA benefits.
According to the DRI, the alleged masterminds charged substantial commissions from Indian importers for arranging the routing of consignments, documentation, customs clearance and transportation.
The investigation is continuing.
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