In a major success, the Central Bureau of Investigation managed to secure deportation of Dubai-based Ravindra Rastogi and brought him to the country in connection with the Rs 171 crore (Rs 1.71 billion) duty drawback scam even as the noose around two of his brothers was further tightened with the US sending Letters Rogatory against them in a separate scam committed there.
Rastogi, who was arrested on an Interpol Red Corner warrant, was brought to Mumbai, a CBI spokesman told reporters in New Delhi.
Rastogi was produced before a designated court in Mumbai, which remanded him to CBI custody till February 15, he said.
The spokesman said a detention order had already been issued against him under COFEPOSA following a request by the Directorate of Revenue Intelligence. Besides this, an "open-ended non-bailable warrant", issued by a Chennai court, was also pending against him.
Meanwhile, the United States has sent a Letters Rogatory to India to inquire into the shell companies allegedly opened by the Rastogi brothers, he said.
One of the four brothers, Narendra, is under provisional arrest in the US pending an extradition request from India. He was arrested by the Federal Bureau of Investigation in connection with the alleged defrauding of several banks to the tune of $600 million.
The case involved London-based Rastogi brother Virendra, against whom a Red Corner Notice was already pending. He has been banned from leaving Britain by Scotland Yard following his involvement in the scam in US, the spokesman said.
Giving details about the case, the spokesman said Ravindra and his three brothers had floated 14 companies in India and claimed that these companies were engaged in exporting bicycle parts to Russia, Hong Kong and other countries at exorbitantly over-invoiced export value with a dishonest intention to cheat the government by claiming excess custom duty drawback.
The fraud and Rastogi brothers' role in it came to notice when three of their consignments were intercepted and checked at the Chennai airport by the DRI, he said.
Subsequent investigations into the exports made by them from Mumbai port also revealed their role in the fraud, he said.
"As their action involved violation of several acts of laws, the CBI had registered three cases in Chennai during 1999 and seven cases in Mumbai during 2000 against the Rastogi brothers on a reference from the Vigilance Directorate of Customs," the spokesman said.
During the investigations it was found that fictitious bank accounts were opened in the name of these 14 firms.
"The accounts were solely used for diversion of drawback proceeds as well as for forex remittances. The amounts were withdrawn in cash and handed over to Ravindra or Subash, who in turn used to send them outside India through the Hawala channel," the spokesman said.
