The CBI has uncovered textile manufacturers based in Hosur and Tirupur and several other facilitating companies who have been scamming the duty drawback incentive by the Government of Rs. 12 crore at the Tuticorin Port.
Cases have been filed with regard to this scam.
Duty drawback is an incentive for exporters to avail a rebate of 8 per cent to 10 per cent on the duty they have paid from the stage of manufacturing the goods till its export.
The refund for this is deposited into their accounts based on their Import Export Code (IEC) as soon as their container is cleared for export by a Container Freight Station (CFS) or Inland Container Depot (ICD).
The cases registered by CBI Madurai are against 8 manufacturers and four entities related to cargo management and freight operators who have been accused of submitting 260 false shipping bills to claim duty drawback of around Rs. 12.45 crore.
Vaishnavi Knit Garments, AV Tex, RP Enterprises, MM Enterprises, TM Impex in Tirupur, Interlook Cargo Clearing and Forwarding, Chennai, PP Textiles, SV Garments in Hosur and US Group and Enterprises in Mettur are among the accused companies.
Sources said that in these cases, the gang had managed to get the system ID and password at the St Johns Inland Container Depot (ICD) near Tuticorin port and enter details of non-existent export goods based on which the drawback duty was received.
CBI has booked cases under sections for cheating, forgery, criminal conspiracy and corruption.