India: DRI unearths Rs. 2,240 cr. banking-hawala scam

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July 8, 2016

The Directorate of Revenue Intelligence (DRI) in Mumbai has unearthed a ‘banking-hawala’ scam, in which reputed public sector banks illegally remitted Rs. 2,240 crore overseas based on forged documentation and declarations of traded goods by exporters and importers.

The funds, generated in connivance with officials of six public sector banks, were a result of duty drawbacks claimed on the basis of inflated export bills and, in most cases, non-existent imports. The actual import value of the goods was not more than Rs. 60 crore, said DRI officials, who did not wish to be identified.  There is also a violation of the Foreign Exchange Management Act, which controls the amount of money that can be remitted abroad,” a DRI official said. “This money has no legal history, so obviously it is laundered money.