DRI Bulletin Apr-Sept 2024

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DRI

DRI BULLETIN

APRIL - SEPTEMBER 2024

Foreword

Mohan Kumar Singh, I.R.S

Pr. Director General

Directorate of

Revenue Intelligence

The inaugural issue of the “Smuggling in India Report” was

released when DRI celebrated the Diamond Jubilee of its

foundation on December 4, 2017. Since then, this Report has been

the bellwether for the Customs community, consistently capturing

the trends in smuggling across India’s land, sea and air borders

while simultaneously highlighting the ingenious methods adopted

by smugglers and fraudsters.

While the annual Report has been an invaluable resource for

Customs authorities as well as stakeholders including the

intelligence community, law enforcement agencies, policy makers

and researchers, the need to capture the fast-changing landscape

of illicit trade on a more frequent basis has been felt for some time

now. This need is accentuated given that the annual Report,

covering the previous ﬁnancial year, is released typically in

December, which is a full 8 months after the conclusion of the

reporting period. This time lag is perhaps anachronistic in an age

where information ﬂows rapidly and smugglers innovate and

evolve their methods even more rapidly.

It is in this context that a short and succinct supplementary report

has been conceived in DRI that will give a glimpse into the

highlights and evolving trends in smuggling in the ﬁrst half year

period of the current ﬁnancial year 2024-25. This new report titled

“DRI Bulletin: April-September 2024” is intended to give a peek

into the signiﬁcant interdictions and investigations undertaken by

DRI. I am conﬁdent that this will be a welcome addition to the

comprehensive Smuggling in India Report which will continue to

be published every December.

It gives me great pleasure to place before you the inaugural issue

of the report “DRI Bulletin: April-September 2024” on the 67th

Foundation Day of DRI.

The Hon’ble Supreme Court, in its judgment on November

7, 2024, in the Canon India Pvt. Ltd. case, afrmed that DRI

ofcers are “proper ofcers” under Section 28 of the

Customs Act, 1962, for issuing notices thus settling a long

pending and contentious issue. Details of the judgement

can be seen at our website https://dri.nic.in

CONTENTS

CUSTOMS AND

GLOBAL SECURITY

ENVIRONMENT

COMMERCIAL

FRAUD

IPR, HEALTH

AND SAFETY

INTERNATIONAL

COOPERATION AND

COORDINATION

DRUGS

GOLD

CUSTOMS AND

GLOBAL SECURITY

STRATEGIC TRADE CONTROL ENFORCEMENT

DRI continued its vigil against illicit trade that is not in con-

formity with India’s strategic trade controls. In a signiﬁcant

interdiction in July 2024, DRI seized a consignment of

2560 kg of the chemical “ortho-chloro benzylidene malo-

nonitrile” at Kattupalli port in Tamil Nadu. The consignment

was transiting through India.

The chemical is used as a riot control agent. It is controlled

under entry 6A007 of SCOMET and is covered in the Muni-

tions List of the Wassenaar Arrangement, the multilateral

export control regime of which India is a member since

2017.

FOREIGN CURRENCY

In the ﬁrst half of FY 2024-25, foreign currency seizures

collectively amounting to INR 13.76 cr have been booked

by DRI units and Customs formations. Involvement of

foreign nationals in smuggling of foreign currency was

noticed.

In a signiﬁcant case at Chandigarh airport, DRI intercepted

three lady passengers who were scheduled to ﬂy to Abu

Dhabi on July 13, 2024. Search of their baggage resulted in

recovery of USD 207,320 valued at INR 1.73 cr. All three

were arrested.

DRUGS

METHAMPHETAMINE

Methamphetamine seizures in 2024 have increased in the

North Eastern States of Assam and Mizoram. Remote forest

areas and rivers in the Indo-Myanmar borders provide the

smugglers and trafckers with covert routes to avoid detec-

tion. Key sectors like Moreh and Churachandpur in Manipur

and Zokhawthar in Mizoram are highly vulnerable. The smug-

gled drugs are further transported to other North Eastern

States and other parts of the country by road and train using

carriers. Personal vehicles and commercial cargo transport

vehicles are the preferred mode of transportation.

Trend also indicates smuggling of methamphetamine through

sea route in the Andaman Sea and Bay of Bengal. For coastal

smuggling, the drug is brought to coastal hamlets such as Ra-

meswaram, Tuticorin and Nagapattinam, concealed within

specially designed compartments in buses, trains, or cars.

From these locations, it is smuggled across the maritime

border to Sri Lanka through mid-sea transfers involving Indian

ﬁshing boats. Investigations by DRI have revealed that smug-

gling syndicates employ individuals with historical ties to

Myanmar to transport drugs to Tamil Nadu. Those with con-

nection to Sri Lanka are tasked with organizing mid-sea trans-

fers and managing payments through hawala networks.

The town of Moreh, located at the India-Myanmar border in

Manipur, has emerged as a crucial hub which plays a signiﬁ-

cant role in these operations.

In the ﬁrst half of FY 2024-25, DRI has seized 123 kg of

methamphetamine in 11 cases compared to 136 kg in 8

cases in the entire period of FY 2023-24, which underlines

the increasing trend of seizure of this drug.

GANJA

On July 6, 2024, DRI seized 765 kg of ganja from a pickup

truck parked near a brick factory in Dhalapathar, Khurda

district, Odisha.

In August 2024, DRI busted a clandestine mephedrone

manufacturing facility in an under-construction building in

Nagpur. The operation resulted in the seizure of 51.95 kg of

mephedrone in liquid form, along with raw materials and

equipment. Four individuals including the mastermind and

ﬁnancier of the syndicate were arrested.

PSEUDO-EPHEDRINE

In a signiﬁcant detection on September 25, 2024, DRI

seized 112 kg of pseudo-ephedrine from a container at

Chennai port that was bound for Australia. The container

was declared to contain quartz powder. However, on exam-

ination, 37 packets containing pseudo-ephedrine were

found deeply concealed in the bottom of the quartz powder

bags. Two persons have been arrested so far in the ongo-

ing investigation.

GOLD

The traditional gold smuggling routes remained active

during this period.

In a landmark case, DRI intercepted a lady passenger at

Mumbai airport on April 25, 2024 and recovered 25 kg of

gold from her. The gold was concealed in specially made

cavity bearing belts and knee caps. She was brazenly

taking advantage of her diplomatic immunity to smuggle in

gold from Dubai.

In another case involving foreign nationals, three lady pas-

sengers arriving at IGI Airport from Bangkok on August 21,

2024 were intercepted and gold bars weighing 21.98 kg

were recovered from their possession.

DRI uncovered an ingenious modus of smuggling gold

through the air cargo route. A shipment of goods declared

as “lens center instrument” that had arrived at New Delhi

from Hong Kong was examined by DRI ofcers on April

29-30, 2024. On breaking upon the instrument, 1300 gms

of gold was found concealed in its discs. 31.4 kg of gold

valued at INR 20.5 cr was recovered from the shipment.

MEPHEDRONE

In a major development, an attempt to smuggle gold into

India from the East Ladakh sector was foiled by the ITBP.

On July 9, 2024, 108 kg of gold was interdicted by a ITBP

patrolling party near Sirigaple in East Ladakh. The gold was

being smuggled on mules by two porters. The investiga-

tion was handed over to DRI given the wider ramiﬁcations.

So far ten people involved in the smuggling have been ar-

rested.

ENVIRONMENT

DRI units across the country made signiﬁcant seizures of

diverse ﬂora and fauna including jackal skins, dried sea

horses, shark ﬁns, pangolin scales, elephant tusks, turtles

and red sanders.

The rivers in India’s Gangetic plain teem with life including

many indigenous species of turtles. These species, pro-

tected under the as Wildlife (Protection) Act, 1972, are con-

stantly threatened by trafckers. In a major crackdown, DRI

conducted a series of operations and rescued 643 turtles.

On June 15, 2024, DRI intercepted

a passenger at Patna on the Akal

Takht Express, rescuing 99 Indian

Roofed Turtles and 65 Indian Tent

Turtles.

DRI intercepted 4 persons at Patna

on September 13, 2024. who were

travelling by Kamakhya Weekly

Express. 212 Indian Flap Shell

turtles and 21 Indian Soft Shell

turtles were rescued.

TURTLES

DRI intercepted three passengers

at Bangalore Airport on August 3,

2024

smuggling

6,626

dried

seahorses to Singapore. Protected

under Schedule I of the Wildlife

(Protection) Act, 1972, seahorse

trade is prohibited. Four persons

have been arrested in this case.

SEA HORSE

On September 20, 2024, DRI

intercepted a truck in Delhi NCR

carrying 4.4 MT of red sanders

worth INR 4.4 cr in the illicit

international market.

RED SANDERS

The Union Finance Minister inaugurated Phase IV of

Operation Sesha on October 30, 2023, a joint initiative by

Indian Customs, RILO Asia-Paciﬁc, and RILO Middle-East to

combat illegal timber trade, including red sanders. Taking

the initiative forward three seizures totaling 19.4 MT were

made during this period at Chennai, Nhava Sheva and

Delhi.

COMMERCIAL

FRAUD

TRADE BASED MONEY LAUNDERING

Goods

Involved

Electrical

Capacitors

Electric

Supply Conductor

Devices

Cosmetics

(Dark Circle

Essence)

Cosmetics

(Skin Tightening

Gel)

Seizure

51.83 lakh

pieces

1.49 lakh

pieces

8.00 MT

40.70 MT

Value declared in B/E

(FOREX sent abroad)

INR 75.62 cr

(INR 148 - 155 per piece)

INR 1.00 –

4.50 per piece

INR 90 -

110 per piece

INR 300 -

500 per Kg

INR 300 -

500 per Kg

INR 132.02 cr

(INR 7,684 –

48,473 per piece)

INR 33.14 cr

(INR 41,430 per Kg)

INR 335.39 cr

(INR 81,771 –

INR 82,014 per Kg)

Value ascertained

by Technical Expert

Using data analytics, DRI has busted a major TBML racket

operating in multiple locations across the country. Cheap

quality electrical goods and cosmetics were being

imported at grossly inﬂated prices through newly

registered ﬁrms. Substantial foreign exchange moved out

of the country. To avoid paying import duties, the importers

ﬁled warehousing bills of entry. At the time of export from

the warehouses, there would be no corresponding inﬂow

of foreign exchange into India.

Goods having declared value of INR 576.17 cr have been

seized by DRI at Air Cargo Kolkata, Nhava Sheva Port,

Mundra Port, Pali ICD, Vallarpadam SEZ and Kochi Port.

Cases against seventeen dummy importers have been

booked and ﬁve persons have been arrested.

IPR, HEALTH

AND SAFETY

CIGARETTES

Apart from the Myanmar- India border, the smuggling

syndicates based in South East Asia and the Middle East

carry out major operations through sea route. Free Trade

Warehousing Zones in the Middle East are emerging as a

major transit point from where cigarette- concealed

consignments are shipped to India. Though illicit cigarettes

are reportedly manufactured in certain South East Asian

countries, it appears that the consignments are initially

shipped to Dubai from southeast Asia and then re-routed

to India.

There has been a sharp uptick in the number of cases of

seizure of contraband cigarettes recently, including in

regions close to the porous Indo-Myanmar border. Major

seizures were efected in the cities of Chennai, Shillong,

Guwahati, Mumbai, Cochin and Aizawl. A majority of the

cigarette consignments were smuggled through the sea

routes followed by land and air routes.

DRI seized 27.78 lakh foreign origin cigarette sticks con-

cealed beneath baby diapers in a 20ft container at ICD

Whiteﬁeld on April 24, 2024. The case also involved IPR

infringement.

3.31 cr sticks

22 Cases (up to September)

2023

3.95 cr sticks

91 Cases (up to September)

2024

CIGARETTE SEIZURES

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