NEW DELHI: Serious cases of FERA violations amounting to crores of rupees and involving a group of influential rice exporters mostly from Bombay have come to light
According to sources in the Directorate of Enforcement which is looking into the matter these exporters swindled the exchequer of a huge amount of foreign exchange by giving false declarations to the Government.
It all took place towards the beginning of this year when the exporters booked a consignment of high quality rice for the Soviet Union a rupee payment area but actually diverted it to Saudi Arabia where it was sold in hard currency For purposes of accounting however they showed payment in rupees.
The exporters apparently in collusion with port authorities showed the destination as Soviet Union but chose to transit the commodity through Dammam a Saudi a long and circuitous route. This aroused suspicion among authorities who on subsequent enquiries discovered that the exported consignment never reached USSR. Most of the export consignments were booked from Kandlaand Bombay although some quantity was also booked from a nondescript port near Jamnagar in Gujarat.
The Enforcement Directorate enquiries so far have reportedly confirmed that the export consignments were mostly sold out in the Saudi Arabian port city of Dammam and that they never reached Roterdam another transit point on way to Moscow or Leningrad.
Apart from the FERA violation the exporters have indulged in mis-declaration and manipulation leading to fraud.
Soon after a prima facie case of fraud was detected the Government referred it to the Enforcement Directorate. Just as the investigation reached a crucial stage however the investigating officer was changed causing some setback to the enquiry.
Article extracted from this publication >> September 20, 1991
