Local intelligence inputs help DRI bust major diesel scam

Representative ImageVISAKHAPATNAM: A major diesel scam was recently unearthed by officers of the Directorate of Revenue Intelligence (DRI) of Hyderabad and Chennai. The DRI sleuths acted on inputs provided by the AP state intelligence department and seized around 3 lakh litres of diesel worth Rs 1 crore from 14 containers at Chennai port which was imported in the guise of mineralspirit from Dubai. The DRI officials also arrested four persons, including the mastermind and a hawala operator, involved in the scam under Customs Act of 1962.

After getting specific intelligence inputs, simultaneous search operations were carried out by the DRI officers of Hyderabad and Chennai with the active support from the intelligence wing of the AP at various places across Andhra Pradesh and Tamil Nadu since April 17. Searches were conducted at 12 places — from Kakinada in East Godavari to Chennai in Tamil Nadu — belonging to operators or importers, clearing agents, transportation brokers, supervisors, hawala operators and others.

Various dummy companies were opened in Dubai to purchase diesel and import it to Chennai by creating false documents and invoices. The price difference was adjusted by payments through hawala channels, DRI sources said. The operators have already smuggled around 5,366 MT (63 lakh litres) of diesel valued at over Rs 17.7 crore so far, which comes to around 285 containers.

The state intelligence wing had provided the inputs about the diesel scam to the DRI. The modus operandi involved smuggling diesel into India in the name of mineral spirit. Some operators based at Kakinada and Chennai were involved in the scam. The diesel, in huge quantities, were brought by the operators on regular basis from Dubai to Chennai port in containers for illegal sale in Tamil Nadu, AP and Telangana, DRI sources said.