The Directorate of Revenue Intelligence (DRI) has arrested Nagpur businessman Jayesh Panchamatiya (55), in an international betel nut smuggling racket involving thousands of crores of rupees. He is accused of importing betel nuts from Indonesia and passing them off as Bangladeshi agricultural produce to avoid customs duty. The arrest has created a panick in Nagpur’s betel nut market. Several traders are reportedly worried as the investigation is likely to cover more businessmen and their financial transactions.

 

According to sources, Indonesian betel nuts attract customs duty of around 105 per cent in India. However, imports from Bangladesh enjoy duty benefits. The accused allegedly exploited this difference to bring Indonesian betel nuts into India at a lower cost. The investigation has revealed that the consignments were first sent from Indonesia to Bangladesh. Fake documents were allegedly prepared to show them as Bangladeshi agricultural produce. The consignments were then brought into India through Kolkata and supplied to different markets. A Bangladesh-based firm, Balaji International, is suspected to have played an important role in the network. Sources said Panchamatiya and other traders, identified as Anis, Tinku, Anna and Sunny, were allegedly involved in buying and selling betel nuts linked to the network. Their exact roles are being investigated.

 

The DRI began the investigation after receiving information about the alleged smuggling network, which is suspected to have operated for several years. The probe covered traders in different cities. Panchamatiya was summoned by the DRI’s Indore unit for questioning. After interrogation, he was handed over to the Kolkata unit, which subsequently arrested him. Sources said nine businessmen have been arrested so far. A trader named Khushi Chaudhary was granted bail after spending around two months in custody. Kolkata businessman Dinesh Aggarwal is suspected to be the mastermind of the racket. He is yet to be arrested. The DRI is now examining the financial transactions and business links of the accused.