The Enforcement Directorate (ED) on Wednesday carried out raids at several premises linked to Delhi-based businessman Vikas Garg, chairman of Ebix Inc, in connection with an alleged Rs 190 crore customs duty fraud. The action stems from a Central Bureau of Investigation (CBI) FIR accusing Garg and others of illicitly importing duty-free materials, diverting them into the domestic market and forging export documentation to cover up the crime.
Garg, who recently acquired the Nasdaq-listed Ebix Inc., is also a promoter of listed companies, including Vikas Ecotec, Vikas Lifecare, Eraaya Lifespaces and Advika Capital. His name had surfaced earlier in the Mahadev betting app case, where ED officials alleged that he received proceeds of crime from accused Harshankar Tibrewal. He was questioned multiple times following raids in April, and Sebi was asked to probe suspected stock manipulation in companies linked to him.
Forgery, Fake Exports And Duty-free Diversion
The latest ED action is based on a 2023 CBI FIR naming Garg and seven others, including Titan Sea and Air Service and its directors. A Directorate of Revenue Intelligence (DRI) inquiry had found that duty-free consignments of PVC Resin and betel nuts, imported between 2015 and 2017 via Free Trade Warehousing Zones (FTWZs) in Maharashtra, were diverted into the Indian market rather than re-exported as mandated under Section 7 of the SEZ Act.
Investigators allege that forged shipping bills, false customs seals and fabricated transport documents were used to show fictitious exports to Nepal and Bangladesh through land customs stations, while the goods were actually sold to domestic buyers, including Delhi-based Sakshi Marketing.
The FIR also names Dubai-based businessman Pradeep Kumar Mittal, alleging that Garg acted as his associate in India, along with logistics operators Jitendra Bansal and Brij Mohan Bishnoi, who allegedly facilitated the diversion through falsified records.
Rs 190 Crore Loss To Exchequer Under Probe
Authorities estimate that the illegal diversion of duty-free imports resulted in a loss of about Rs 190 crore to the government between 2015 and 2017. The CBI booked the accused under charges of criminal conspiracy, cheating, forgery and provisions of the Prevention of Corruption Act.
Following this, the ED registered a Prevention of Money Laundering Act (PMLA) case and launched searches across Delhi, Mumbai and other locations. Officials said the operations aim to trace the flow of alleged proceeds of crime, track financial links and identify shell entities believed to have been used to launder funds tied to the customs duty evasion scheme. |
