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20 implicated in Mumbai airport customs scam over Hong Kong cell phones

A WIDENING scandal implicating a score of Indian Customs officers in smuggling mobile phones from Hong Kong, has been discovered at Mumbai's air cargo terminal, reports the Mumbai Mirror.

Investigations revealed that a Hong Kong-based cartel had been supplying mobile phones and their accessories to a set of importers in Mumbai, said the report.

These importers concealed their identities and managed to "get goods out of the air cargo complex" being by treated as duty-free exports over a period of six months.

When asked about steps taken to prevent corruption, Chief Commissioner of Customs, Zone III, APS Suri, said: "Whenever there is an incident, we react to it instantly. Prompt remedial action on our part is expected to go a long way in checking criminal exploits and systemic gaps, if any."

Thus customs inspector Shylender Singh was arrested by agents of the Directorate of Revenue Intelligence (DRI) at the Jawaharlal Nehru Customs House (JNCH) at Nhava Sheva on October 26.

Singh allegedly told DRI officials how he was paid INR2.5 million (US$38,705) after first demanding INR10 million, to allow ghost exports to enjoy "duty drawbacks" - part of a new government scheme to incentivise exports.

Said one DRI detective: "Our probe also helped us in arrive at adequate remedial measures. We are also in the process of revamping our Central Intelligence Unit (CIU)."

The CIU is a squad attached to each customs zone, which carries out surprise checks and surveillance operations.

Earlier it was reported that 17 customs officers were being probed by the DRI into the INR10 billion ghost import and duty drawback scam.

Recently, the airport graft case had rocked the customs department leading to the suspension of 19 officials.

The department said "professional inadequacies of conduct" on the part of these officials led to the evasion of import duties to the tune of over INR3 billion in the process of smuggling of mobile phone gear.

Further probe is on to ascertain the extent of "co-operation" of these officials with smugglers posing as importers of electronic goods at the Sahar Air Cargo Complex.

Among those suspended was the assistant commissioner of customs Mir Ranjan Negi, a former India hockey goalkeeper - and the inspiration behind Bollywood hit Chak De India - and his colleague of the same designation VN Ganoo.

Both were suspended in July, following what was termed "oversight failures". Former Chief Commissioner of Customs Devendra Singh, who had suggested disciplinary actions against the department staffers, also recommended a series of "preventive measures" at the revenue rich air cargo complex.