Indian federal authorities have reportedly arrested a top executive at retail giant Future Group on customs fraud charges involving more than US$2m of unpaid customs duties on garment imports.
Reuters, citing a government statement, said the Directorate of Revenue Intelligence arrested Dinesh Maheshwari, executive director and chief financial officer of Future Enterprises, for flouting import rules that allow duty-free shipments of certain items under a free trade pact with Bangladesh.
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The imports were being supplied from other countries but being directed through Bangladesh and passed off as being of Bangladeshi origin after minimal processing, the finance ministry statement said.
“Investigations further reveal that the garments were supplied by third-country suppliers based in Dubai and Singapore, but were delivered from Bangladesh after some minimal processing, not enough as per the norms for the product to be called as of Bangladeshi origin.”
The government said cases of abuse of the free trade pact “directly affect the Make in India campaign of the country and distort the level playing field for genuine Indian manufacturers.”
Future Group did not respond to just-style’s requests for comment.
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