Pan masala firms have come under the DRI scanner for alleged undervaluation of certain raw materials at the time of import, leading to large scale duty evasion.
Sources in the agency said the matter came to light after the agency raided a leading Jodhpur-based firm which was into production of pan masala.
DRI officials said it has come to light that certain firms import 'katha' and 'supari' by undervaluing the cost of the consignment at the time of the import leading to a loss of several crore as duty to the exchequer.
As per the modus operandi, dubious firms are created in some country other than the place from where the raw materials are sourced, they said.
"In the particular case, the real origin of import was Indonesia but it was received by a proxy firm in Dubai. From there, new sale receipts were made and the consignment was sent to India. The new receipts had grossly undervalued the cost of the consignment thereby leading to duty evasion," a senior DRI official said.
The firm in question meanwhile, has paid Rs 3.25 crore upfront after raids were conducted at Jodhpur, Jaipur and Mumbai premises of the firm recently.
Officials said though no special drive was being conducted to check pan masala making firms, they said the agency would bring under its scanner all such firms.
