Ahmedabad: The Directorate of Revenue Intelligence (DRI) has exposed a sophisticated, multi-state import scam valued at over ₹250 crore, involving the illegal shipment of more than 50 Chinese-made hydraulic breakers and parts into India through third country. In a series of coordinated raids across Ahmedabad, Gandhidham, and Bengaluru, DRI officials uncovered a complex operation designed to circumvent a 162% anti-dumping duty against Chinese import by fraudulently declaring Malaysia as the country of origin.

The investigation was launched after intelligence suggested that a North India-based syndicate was exploiting a loophole to evade taxes imposed by the Indian government in June 2022 to protect domestic manufacturers from cheaper Chinese imports. According to DRI sources, the importers would ship the Chinese hydraulic breakers and parts to Malaysia, where the paperwork would be altered to show Malaysia as the point of origin before the consignment was dispatched to Mundra Port in Gujarat.

The multi-city raids targeted the key players in the network, including the primary importer, an Ahmedabad-based machinery company, and a Gandhidham-based clearing agent who allegedly facilitated the fraudulent documentation. DeshGujarat