DRI Seizes Luxury Furniture in Multi-Crore Operation
In a major crackdown, the Directorate of Revenue Intelligence (DRI) has uncovered a sophisticated customs fraud scheme involving the importation of luxury furniture. Following specific intelligence, DRI officials executed searches at various locations, including business premises and warehouses, revealing a complex network engaged in massive undervaluation and misdeclaration of high-end furniture. This operation has led to significant customs duty evasion, estimated at around ₹30 crore.
Details of the Investigation
The DRI’s investigation has unveiled a well-orchestrated scheme that utilized dummy importers and local intermediaries to facilitate the import of luxury furniture. The furniture was sourced from reputable suppliers in Italy and other European countries. However, the invoicing was manipulated through shell companies based in jurisdictions like Dubai. Additionally, fabricated invoices were procured via a Singapore-based intermediary, falsely declaring the goods as unbranded furniture at significantly lower values to evade customs duties. Once the goods cleared customs, they were transferred on paper to the intended beneficial owner through a local intermediary, while the actual delivery was made directly to the customer.
This intricate operation involved a gross undervaluation of 70% to 90% of the actual transaction value. The DRI’s findings indicate that this fraudulent activity resulted in an estimated customs duty evasion of approximately ₹30 crore. The investigation has identified the beneficial owner, the dummy importer, and the intermediary as key players in this conspiracy, leading to their arrest under the provisions of the Customs Act, 1962.
Previous Cases and Ongoing Investigations
This recent bust is not an isolated incident. In May 2025, the DRI uncovered a similar case involving the undervaluation of luxury furniture imports through a front company managed by another entity. That operation also resulted in significant duty evasion, exceeding ₹20 crore, and led to the arrest of three individuals. The DRI’s ongoing investigations aim to expose the broader network of shell companies, dummy Importer Exporter Codes (IECs), and financial flows associated with these fraudulent activities.
The agency is committed to delving deeper into the operations of these entities to dismantle the entire network involved in such customs fraud. The DRI’s efforts are crucial in maintaining the integrity of the import system and ensuring compliance among businesses.
Impact on Revenue and Market Integrity
The DRI’s crackdown on customs fraud is vital for protecting government revenue and ensuring a fair marketplace for compliant importers and domestic manufacturers. Such fraudulent activities not only lead to substantial losses in customs duties but also create an uneven playing field, disadvantaging those who adhere to regulations. By exposing these schemes, the DRI aims to deter future violations and uphold the principles of fair trade.
As the DRI continues its investigations, it emphasizes the importance of vigilance in the import sector. The agency’s proactive measures are designed to safeguard the economy from the detrimental effects of commercial fraud, ensuring that legitimate businesses can compete fairly in the market.
Future Actions by DRI
The Directorate of Revenue Intelligence is intensifying its efforts to combat customs fraud and related activities. With a focus on identifying and prosecuting those involved in such schemes, the DRI is working to strengthen its enforcement capabilities. The agency is also collaborating with other governmental and international bodies to enhance its intelligence-gathering efforts.
As investigations progress, the DRI remains dedicated to uncovering the full extent of these fraudulent networks and holding accountable those who exploit the system. By doing so, the agency aims to restore integrity to the customs process and protect the interests of the nation and its compliant businesses.
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