The Directorate of Revenue Intelligence (DRI) has arrested a man for allegedly importing low-quality cosmetics at inflated prices to siphon foreign exchange out of India. The agency seized Skin Tightening Gel worth Rs 335 crore during the probe.
According to the DRI sources, on August 12, 2024, officers inspected a pharmaceutical company’s warehouse in Kochi, Kerala, and seized 20,000kg of Skin Tightening Gel valued at Rs165.87 crore. Another inspection on August 21 uncovered 20,700kg of the same product, valued at Rs 169.26 crore.
“Government drug inspector after examination pointed out the absence of any batch number, manufacturing date, expiry date, and other mandatory prerequisites for import of cosmetic products. He also noted the unhygienic conditions like fungus infestation inside the wooden pallets in which the products were imported in bulk. The declared price of Rs82014 per kg was exorbitantly high, as the actual value ranged between Rs 300 and Rs 500 per kg,” said a DRI official.
On December 3, the DRI traced one accused, AH Shah, to Mira Road. Shah admitted to conspiring with a syndicate to overprice low-quality cosmetics and transfer foreign currency abroad.
“He knowingly and consciously abetted the fraudulent import for siphoning off forex out of India, putting the country’s economic sovereignty under threat,” the official added.
