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This is an archive article published on October 13, 1998

Octroi evasion racket unearthed

AMRITSAR, Oct 12: An alleged racket of octroi evasion to the tune of crores of rupees by certain importers on sugar imported from Pakista...

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AMRITSAR, Oct 12: An alleged racket of octroi evasion to the tune of crores of rupees by certain importers on sugar imported from Pakistan with the alleged cahoot of the municipal corporation and customs authorities has surfaced here.

The monitoring agencies, customs and municipal corporation (MC) are maintaining different figures of the imported sugar, indicating fishy business.

According to the official sources in Custom Department, they have registered an import of 17,81,310 quintals of sugar during the period between February 1 to August 31, 1998, where as the Octroi Department of the MC has shown on records the receipt of octroi on 91,921 quintals and issuing transit permit for rest of 17,10,478 quintals. 21,089 quintals of sugar is in excess of customs records.

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The excess weight registered by the Octroi Department raises suspicion of involvement of Customs Department, who is responsible for clearance of sugar. Issuing of transit permit to 17,10,478 quintals of sugar by the Octroi Department is also under clout as most of the importers have hired godowns on Tarn Taran road, near Sangrana Sahib, on the outskirts of Amritsar. It is alleged that the sugar was delivered in the wholesale market of Amritsar having being routed through the godown in official records.

The allegation was further strengthened with the recovery of 200 sugar bags by MC officials from Dal Mandi area nearly a month back. The octroi on these bags was evaded by an importer. The department had even suspended two octroi clerks on this count.

D.S. Sra, Commissioner Customs, maintains that their figure was correct as the bogies coming from Pakistan were sealed and number of bags was mentioned on them so any difference of weight or quantity of bags was not their mistake.

According to an estimate, the importers had allegedly evaded an octroi worth about Rs two crores on normal charges of Rs 14 per quintal on sugar stocks shown to have been transacted to godowns or other parties.

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However, Commissioner MC S.S. Rajput concluded the argument merely by saying, “Evaders would keep evading the octroi and law enforcement agencies would continue to perform their duty”.

D.P. Gupta, the Executive Officer of the MC, however was reluctant to impart any information on the matter. Though he was available in the office, he kept this reporter waiting till late in the evening.Meanwhile, president All India Hindu Shivsena Surinder Kumar Billa has demanded a CBI inquiry into the “sugar scam” which could reveal the gross malpractice on part of the various concerned agencies involved in sugar import from Pakistan.He alleged that customs, corporation and importer nexus has been causing loss of crores of rupees to the government exchequer.

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