Molasses smuggling: Ex-prohibition officer in Gujarat gets ₹30 lakh recovery notice

Updated: Dec 21st, 2024

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A large network of smuggling rectified spirit i.e. molasses, produced in sugar factories in Gujarat, has been busted.

A recovery of ₹30 lakh has also been made and a complaint was filed against retired prohibition officer N A Devani for allowing trucks loaded with molasses to pass without collecting legal taxes. Devani was arrested by ACB officials from Bhuj on charges of taking bribes and was sent to jail.

Customs, Directorate of Revenue Intelligence (DRI) and Enforcement Directorate (ED) officials have started an investigation if the other officials from Gujarat are involved in this scam.

According to officials of Customs, DRI and ED, molasses worth over ₹200 crore is officially exported from Gujarat to foreign countries every month, but large quantities are also smuggled illegally out of Gujarat.

A joint operation by these entities inspected containers heading towards Kandla port, and it was revealed that molasses from other states was also being exported. The containers were released after paying the duty on this molasses, but the incident has put the police and central agencies on alert.

To bust the molasses smuggling syndicate, central agencies have started keeping a watch on all ports and borders. Sources suggested that molasses from other states is being exported through Gujarat ports.

In such cases, the person booking the goods and the sugar factory operators must have a license. Apart from a licence, the exporter is required to pay excise duty and possess a licence from Prohibition Department.

However, some corrupt officials impose taxes on some vehicles and allegedly let some of the vehicles pass, damaging the revenue of the Central GST department.

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