1.     CBI Conducts Searches At 36 Places In Daman, Mumbai, New Delhi And Offices Of Distilleries At Daman In Connection With Evasion Of Rs. 340 Crore Excise Duties And Vat In The Union Territory Of Daman
2.     CBI Registers a case against Joint Secretary of MHA and others in this connection

Press Release
New Delhi , 28-04-2010

CBI has conducted searches today at 36 places at the premises of the accused persons at Daman, Mumbai & New Delhi and offices of distilleries at Daman.

A case was registered yesterday against Joint Secretary of MHA (Govt. of India), New Delhi, two Excise Inspectors and one Excise Sub-Inspector at Daman for their connivance with the private persons of Daman based six distilleries and other unknown persons u/s 120-B r/w Section 420 IPC r/w Section 9 and 13[2] r/w 13[1] [d] of PC Act, 1988 and Substantive Offences thereof, for causing loss of Rs. 340 Crore (apprx.) to Daman Administration.

It has been alleged that in order to evade the excise duty and VAT, the distillers of Daman in connivance with the officials of Excise department resorted to under reporting of production by preparing fake documents. The distillers also resorted to unauthorised sale of under reported liquor bottles to the neighbouring States (Goa, Gujarat and Maharashtra) in order to evade the excise duties. Thus, these accused caused financial loss of Rs. 340 Crores (on account of evasion of excise duty to the tune of Rs. 300 Crores and evasion of VAT to the tune of Rs. 40 Crores) to the administration of Daman and Diu.

It has been further alleged that the Daman Administrator tightened its control on the under reporting of the production and unauthorised sale to the neighbouring states by holding regular joint meetings and initiating action for recovery of the evaded excise duties. One of the distillers was in regular touch with the Joint Secretary [Disaster Management], Ministry of Home Affairs, Govt. of India, New Delhi to utilise his services regarding the transfer of Administrator of Daman administration so as to evade the recovery of excise duty. It is further alleged that in lieu of providing such services, the Joint Secretary has accepted Rs. 25 Lacs as illegal gratification and promised one of the distillers that he will get the present administrator transferred out of Daman.

Searches and further investigation are in progress.

More Under Excise Duty

0 Comments

  1. A.BANERJEE says:

    Great work by the CBI, which still has a lot of fire power. It takes a lot of courage of conviction preceded by days and months of relentless preparation and reccee to organise and mount such massive searches at multiple places. Congratulations, CBI. And particularly for covering an IAS officer, that too in the MHA!.

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