DRI takes major action in Mumbai, uncovers customs fraud worth INR 30 crore

The Directorate of Revenue Intelligence (DRI) has conducted raids at several locations in Mumbai and in this operation, the DRI has succeeded in uncovering a customs fraud worth INR 30 crore from the import of expensive wooden items. In this two-day operation, the DRI has arrested three people and a case has been registered against the accused under the Customs Act, 1962.

After receiving information in this regard, the DRI conducted a thorough inspection of the trading offices, warehouses, freight forwarders and customs brokerage offices in Mumbai. At that time, the investigation revealed that a well-known furniture company was importing furniture from Italy and Europe. However, fake companies in Dubai were being used for this import. Fake receipts were also used for this purpose.These goods were being imported directly from Europe. 

The goods were being presented as ‘no-brand’ furniture at a low price by creating fake invoices through a Singapore-based broker and the goods were being ordered in the name of the fake importer. The documents showed that all the goods were transferred to the importer through a local broker after customs clearance. In reality, the goods were being sent directly to the customer or the parent company, the DRI said.

What did the investigation reveal?

It is suspected that customs fraud of at least INR 30 crore was committed by showing a 70 to 90 percent reduction in prices in all transactions. There was collusion between the fake importer, broker and the beneficiary company. For this, fake documents, invoices and companies were used. So far, three people have been arrested in this case and it is possible that more people will be arrested in this case. A similar incident had happened before.

In May 2025, DRI had uncovered a similar case in which expensive wooden items were imported under the name of a fake company. In that case, it was revealed that more than 20 crores of customs duty was embezzled. In that case too, fake companies and importers were used. Currently, the DRI is conducting a thorough investigation into the main accused and financial transactions in the new case. The accused have caused a loss to the government by defrauding the customs of INR 30 crore. It is also being expressed that some of the accused in this case are abroad.