Fraudulent Refund of 4% Refund of SAD - Import of Timber Logs - Several Skeletons in Customs Cupboards - Refund Files recovered from CHA Office
WHEN we carried the story yesterday, we did not realise how murky the waters are in Kandla Customs.
This is how the refund claims are processed in Kandla Customs.
++ Mr. AN of M/s AVJXXX (CHA) gets the refund works from the importers of timber logs.
++ Mr. AN hands over the refund claims files to Mr. RN of M/s KSCXXX (CHA) for submission to Customs and further processing.
++ Mr RN prepares the notesheet and Order in Original for sanctioning the refund and submits the original file back to the Customs where the officers sanction the refund claims.
++ Mr. RN was bringing the files to his business premises with the full knowledge of the official in charge of such files.
++ Mr. AN was collecting commission at the rate of 5% of the refunds from the importers, but only kept 0.5% and was handing the remaining amount to RN's boss. RN was getting 3% of the sanctioned refund.
It appears that the Customs Officers of Kandla were outsourcing their work to RN.
The above details are contained in a letter written by the Chief Commissioner, Ahmedabad to the Customs Commissioner, Kandla. The Chief Commissioner sadly states, “It would be expected of the Group A officers that they exercise proper control and supervision, but they have totally failed in their duty”. The CC recommended a reference to the DG, Vigilance, in respect of Group A Officers and also suspension of the CHA licences.
The DGCEI recovered eight refund files (refund had already been granted) from RN's office with note-sheets and orders signed by several Customs Officers. RN stated before DGCEI that there was not a single occasion when the note sheet or OIO prepared by him was changed by the Customs Officers. He said that the Customs officers were aware that the files were with him and he kept them with him, as they may be lost in the Customs Office.
In less than a year, RN, an employee of a CHA got about Rs. 10 Crores sanctioned and by his own admission, he got a commission of Rs. 30 Lakhs!
And today we got another mail from a Concerned Netizen claiming to be from the trade:-
I have read the story of refund claims of timber in Kandla in your Column . The same seems to be cooked by some enthusiastic departmental officer and having all features of politics in the department, specially on senior levels. The purpose is I want to rise and the simple way is let me down you. The story is suffering from factual infirmities also. As per my information, the investigation in the matter was initiated by the SIIB wing of Kandla Custom House in Mid of December,2009 and they raided premises of more than 50 premises including premises located at Delhi and Karnal also. They have made the recovery in the Crores. DRI seems have not taken up the issue as the same was already taken up by the one wing of the department. In the mid of January,2010 i.e. after a month of searches conducted by the SIIB, DGCEI entered in the matter in guise of intelligence ( Best known to them only as the matter was given the wide coverage by the local newspaper on regular basis before it). I think Custom House, Kandla has not sanctioned refund of 100 Crores in total in last 3 Years, whether DGCEI is covering the imaginary refunds also for the purpose of investigation.
(Perhaps this is from another Departmental officer)