The Directorate of Revenue
Intelligence on Friday said it has busted a racket involving in fraudulent exports of garments to Dubai and arrested a director of two companies in this connection.
Acting on a tip-off, DRI sleuths raided offices of the two companies here and seized documents which suggested that the firms have availed export incentives to the tune of Rs 4.9 crore, an official said.
"A person who controls both the firms has been arrested under the provisions of the Customs Act," the DRI official said.
Investigations revealed that the racket exported consignments to Dubai through Chennai port.
"Cheap quality goods were found to have been exported by 25 to 50 times overvaluing price to earn undue drawback and other export incentives," a DRI statement said.
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