(a) whether a fraud took place during disintegration of the erstwhile Soviet Union
as reported in the Times of India dated May 12, 2007;
(b) if so, whether the Reserve Bank of India has failed to recover money from the fraudsters or the
banks concerned after Enforcement Directorate,Directorate of Revenue Intelligence unearth fraud; and
(c) the steps taken/being taken by the Government of India in this regard?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI S.S. PALANIMANICKAM)
(a) Yes, Sir. Several cases of fraudulent availing
of duty drawback in respect of the exports of the goods
to Russia under the Rupee-Rouble agreement as reported
in the Times of India dated 12.5.2007 have been booked
by the DRI.
(b) Upon receipt of information with regard to said
fraud, RBI investigated and made sample scrutiny of
transactions of some Banks wherein it was confirmed
that the Banks have followed the various provisions
relating to documentary credit and exchange control
regulations. As such, there is no further action
attributable on the part of RBI.
(c) Necessary action has been initiated against
the fraudsters to recover duty/export incentives. DRI
has raised demand of Rs.471.044 crore on account of
fraudulent duty drawback made by the fraudsters, out
of which Rs. 8.56 crore have been recovered. The
Enforcement Directorate has also simultaneously
issued 29 show cause notices out of which 6 show cause
notices have been adjudicated. Apart from this,
Enforcement Directorate has launched prosecution in 8 cases.