This is a story of clandestine import of fast moving consumer goods (FMCG) by misusing the facility of unaccompanied baggage of Mumbai port by certain unscrupulous elements. The clandestine import of consumer goods was facilitated by certain employees of Customs Brokers and employees of MbPT operating from 1 uncleared Indira Docks, Mumbai in financial year 1999-2000. The case was detected by the Central Intelligence Unit (CIU) of New Custom House, Mumbai Customs Zone, Mumbai.
Recording of information:
1. In year 1999-2001, I was posted in CIU as a Superintendent. I was one of the members of a vibrant young team of Preventive Oficers, Examiners, Superitendents and Appraisers. The team was led by a young Dy Commissioner named Mr G Rabindranath. His best quality was that he used to absorb the pressures at his level and never let it percolate down to us. This nature provided space for free and fair investigations in the cases handled by us. The team was full of enthusiasm and strived hard to achieve true milestones of every investigation at hand. CIU team also had good coordination with the team of the Directorate of Vigilance, West Zone, Mumbai. The CIU team working raised the credibility of the entire CIU unit in the eyes of public getting services from Mumbai Customs Zone-I officers. One such public person passed information (sometimes in November-1999) to us through a contact developed by the Directorate of Vigilance. The information revealed that seven large wooden cases loaded with the dutiable consumer goods had been shipped from Dubai by mixing with genuine FCL consignment of household goods entered as unaccompanied baggage. It was further revealed that the said seven cases were warehoused at 1 uncleared Indira Docks, Mumbai, (notified as unaccompanied baggage Centre) and were likely to be removed clandestinely in connivance with MbPT staff.
Immediate action taken:
2. The actionable input of this information needed immediate identification of the seven wooden cases and their removal to safety. The information was received at about 5 p m. In immediate response, I alongwith several other officers moved to Mumbai docks area. The goods cleared from 1 uncleared Indira Docks used to be transported to Green Gate for passing out to local destinations. But, in the vicinity, there were two other gates: (i) Grey Gate was closed at that time; (2) Blue Gate was to remain open upto mid night. Not to take any chances, CIU officers kept survelliance on all passing out vehicles at all gates of Indira Docks and on the vehicles being loaded outside 1 uncleared Indira Docks.
Identification of the smuggled goods:
3. After ensuring preventive measures as above, I alongwith other CIU officers, went inside the MbPT warehouse at 1 uncleared ID. There we inspected the lots destuffed from FCL containers. We observed that the packages belonging to one consignee were bearing the same IGM no. and container no.. But, we found 2 large wooden cases (of the size of almost 4 normal steel cupboards in length, width and height) each at three different places and one large wooden case at fourth place inside the said godown. Thus, in all seven large wooden cases without any marks were identified to be the suspected packages of offending goods. All the said seven wooden cases were almost similar in size and without any marks or nos. These seven wooden cases were not even bearing the container no. and IGM no. All the said packages were kept on hold and were securely kept in the cage inside the godown.
On spot enquiry:
4. On spot enquiry with the shed incharge, it was gathered that MbPT have appointed a stevedore to destuff the goods from FCL containers (of unaccompanied baggage) arriving at 1 Uncleared ID. It was the job of stevedore’s marker to mark container no. and IGM no. on each package de-stuffed from every container and Asstt. Shed Superintendent (of MbPT) was there to ensure that all such marked packages (belonging to one consignee) were stored at one place inside the godown for presentation to Customs for examination together. In absence of marking of IGM no. and container no. on the said seven wooden cases, it was difficult to ascertain the name of the consignee or to ascertain whether any Baggage Declaration Form was filed in the office of the Dy Commissioner of Customs, Unaccompanied Baggage Centre covering any one or all the said suspected packages.
Identification of container no. and IGM no.:
5. In order to ascertain the IGM no. and container no., immediate interrogation of the (i) the Mukaddam of labour gang concerned with destuffing, (ii) Stevedore’s marker concerned with marking of packages; and (iii) Assistant Shed Superintendent concerned with warehousing of marked packages, appeared to be essential to unfold the criminal conspiracy of landing unauthorized goods in Mumbai docks. On interrogation of these persons and verification of relevant tally sheets pertaining to destuffing of goods from the FCL containers, container no./IGM no. were identified. Their interrogation was very informative and revealed as below:
(i) Two wooden cases stored at an obscure place in the godown were destuffed from 1x40’ container on that day itself alongwith another 65 packages belonging to one Mr Rajan.
(ii) The other two wooden cases were destuffed on previous day from another 1x40’ container alongwith other 68 packages belonging to one Shri Abdulla Abdulla.
(iii) The third lot of two wooden cases was destuffed from a third 40’ container alongwith 45 other packages belonging to one Mr Thomas.
(iv) The single wooden case was destuffed from another 1x40’ container alongwith 90 other packages belonging to one Mohemad Aslam.
Past clandestine removal:
6. In addition to the above, it was also gathered that similar two wooden cases were destuffed from 1x40’container last week which were found to have been delivered by MbPT after clearance of relevant BDF from Customs. The goods were transported out of Green Gate in 2 lorries. One of the lorries carried 60 packages whereas the second lorry carried two packages only. On verification of relevant IGM, 60 packages were found to have been manifested. On enquiry of the destination of the said two lorries from the concerned drivers, it was revealed that the lorry containing 60 packages went to the address of consignee whereas the other lorry went to a warehouse near Reay Road station The said warehouse was located in a residential plot of one Mr Khan. The warehouse was searched but nothing of incriminating nature was found or recovered. The person who engaged and paid for the second lorry (carrying two packages to Reay Road) could not be identified.
7. Enquiries with this consignee revealed that he had transferred his residence from Dubai. All the household goods were packed in 60 packages and shipped to Mumbai. He himself cleared his goods through Customs and transported them in one lorry to his present residence. He denied to have consigned any wooden cases of the description as mentioned above. He also denied to have presented any wooden cases of the description as stated above, to Customs for examination or to have taken delivery from MbPT. He also denied to have engaged any second lorry to transport two packages to any other destination.
Statement of Mr Rajan of consignment of 65+2 packages:
8. Mr Rajan confirmed that he had returned from Dubai in the recent past and transferred his residence. He denied to have shipped any of the said 65+2 packages i.e. he disowned the entire consignment. He also denied to have signed BDF filed in the office of Dy Commissioner of Customs, Unaccompanied Baggage Centre and claimed to be a victim of passport theft.
Statement of Mr Abdulla Abdulla of consignment of 68+2 packages:
9. Mr Abdulla Abdulla claimed the ownership of 68 packages and denied to have booked any wooden case of the description as stated above.
Statement of Mr Thomas of consignment of 45+2 packages:
10. Mr Thomas claimed the ownership of 45 packages and denied to have shipped the 2 wooden cases of the description as stated above.
Statement of Mr Mohemad Aslam of consignment of 90+1 packages:
11. Mr Mohemad Aslam claimed the ownership of 90 packages and denied to have shipped 1 wooden cases of the description as stated above.
Seizure of goods:
12. All the said seven wooden crates were opened and examined in presence of independent witnesses. The said wooden cases were found to contain fast moving consumer goods such as perfumes, body spray etc collectively valued at Rs 50 lakhs. These goods were seized and warehoused in ‘A’ warehouse of Mumbai Customs.
Modus operandii:
13. Based on intensive investigations in the case, it appeared that FCL containers were hired by genuine persons in Dubai. They loaded their household goods in the containers and handed over sealed container to the freight forwarder/shipping agent. The wooden cases were stuffed in such containers on way to the warehouse of freight forwarder /shipping agent without the knowledge of actual consignor/consignee by unscrupulous elements. On de-stuffing the container in Mumbai docks, marker of stevedore was to omit marking of container no./IGM no. on the packages of smuggling syndicate which were distinct from other packages by way of their packing and no marks. The Assistant Shed Superintendent was instrumental in warehousing of such unmarked packages at a place other than the place of storage of marked packages. As such, such huge cases were not presented to Customs for examination. The marked packages were examined and allowed clearance. At the time of delivery of goods by MbPT employees, one extra gate pass was made for the wooden cases which destination was a private warehouse at Reay Road as per past record. In this sensational case of clandestine removal of dutiable goods from under the nose of MbPT and Customs, the marker of stevedore, Assistant Shed Superintendent of MbPT and 3 employees of Customs Brokers were arrested for their complicity in the acts of omission and commission of smuggling syndicate.
14. A bulky show cause notice was issued to several noticees. The case was adjudicated by Commissioner of Customs Shri Ramesh Ramchandran.
15. This case became the mother of several other cases which include a case of substitution of high end luxury cars with old and used cars of scrap value. This case will be covered in next story.
(The above story is based on true facts of a case of CIU with me as Investigating Officer. Some of the facts are changed as I could recollect. Pradeep Kumar Gupta. Retired Assistant Commissioner)
Clandesstine import and removal of FMCG goods by misusing unaccompanied baggage facility in Mumbai port in year 1999:
This is a story of clandestine import of fast moving consumer goods (FMCG) by misusing the facility of unaccompanied baggage of Mumbai port by certain unscrupulous elements. The clandestine import of consumer goods was facilitated by certain employees of Customs Brokers and employees of MbPT operating from 1 uncleared Indira Docks, Mumbai in financial year 1999-2000. The case was detected by the Central Intelligence Unit (CIU) of New Custom House, Mumbai Customs Zone, Mumbai.
Recording of information:
16. In year 1999-2001, I was posted in CIU as a Superintendent. I was one of the members of a vibrant young team of Preventive Oficers, Examiners, Superitendents and Appraisers. The team was led by a young Dy Commissioner named Mr G Rabindranath. His best quality was that he used to absorb the pressures at his level and never let it percolate down to us. This nature provided space for free and fair investigations in the cases handled by us. The team was full of enthusiasm and strived hard to achieve true mile stones of every investigation at hand. CIU team also had good coordination with the team of the Directorate of Vigilance, West Zone, Mumbai. The CIU team working raised the credibility of the entire CIU unit in the eyes of public getting services from Mumbai Customs Zone-I officers. One such public person passed information (sometimes in November-1999) to us through a contact developed by the Directorate of Vigilance. The information revealed that seven large wooden cases loaded with the dutiable consumer goods had been shipped from Dubai by mixing with genuine FCL consignment of household goods entered as unaccompanied baggage. It was further revealed that the said seven cases were warehoused at 1 uncleared Indira Docks, Mumbai, (notified as unaccompanied baggage Centre) and were likely to be removed clandestinely in connivance with MbPT staff.
Immediate action taken:
17. The actionable input of this information needed immediate identification of the seven wooden cases and their removal to safety. The information was received at about 5 p m. In immediate response, I alongwith several other officers moved to Mumbai docks area. The goods cleared from 1 uncleared Indira Docks used to be transported to Green Gate for passing out to local destinations. But, in the vicinity, there were two other gates: (i) Grey Gate was closed at that time; (2) Blue Gate was to remain open upto mid night. Not to take any chances, CIU officers kept survelliance on all passing out vehicles at all gates of Indira Docks and on the vehicles being loaded outside 1 uncleared Indira Docks.
Identification of the smuggled goods:
18. After ensuring preventive measures as above, I alongwith other CIU officers, went inside the MbPT warehouse at 1 uncleared ID. There we inspected the lots destuffed from FCL containers. We observed that the packages belonging to one consignee were bearing the same IGM no. and container no.. But, we found 2 large wooden cases (of the size of almost 4 normal steel cupboards in length,width and height) each at three different places and one large wooden case at fourth place inside the said godown. Thus, in all seven large wooden cases without any marks were identified to be the suspected packages of offending goods. All the said seven wooden cases were almost similar in size and without any marks or no.s These seven wooden cases were not even bearing the container no. and IGM no.All the said packages were kept on hold and were securely kept in the cage inside the godown.
On spot enquiry:
19. On spot enquiry with the shed incharge, it was gathered that MbPT have appointed a stevedore to destuff the goods from FCL containers (of unaccompanied baggage) arriving at 1 Uncleared ID. It was the job of stevedore’s marker to mark container no. and IGM no. on each package de-stuffed from every container and Asstt. Shed Superintendent (of MbPT) was there to ensure that all such marked packages (belonging to one consignee) were stored at one place inside the godown for presentation to Customs for examination together. In absence of marking of IGM no. and container no. on the said seven wooden cases, it was difficult to ascertain the name of the consignee or to ascertain whether any Baggage Declaration Form was filed in the office of the Dy Commissioner of Customs, Unaccompanied Baggage Centre covering any one or all the said suspected packages.
Identification of container no. and IGM no.:
20. In order to ascertain the IGM no. and container no., immediate interrogation of the (i) the Mukaddam of labour gang concerned with destuffing,,(ii) Stevedore’s marker concerned with marking of packages; and (iii) Assistant Shed Superintendent concerned with warehousing of marked packages, appeared to be essential to unfold the criminal conspiracy of landing unauthorized goods in Mumbai docks. On interrogation of these persons and verification of relevant tally sheets pertaining to destuffing of goods from the FCL containers, container no./IGM no. were identified. Their interrogation was very informative and revealed as below:
(v) Two wooden cases stored at an obscure place in the godown were destuffed from 1x40’ container on that day itself alongwith another 65 packages belonging to one Mr Rajan.
(vi) The other two wooden cases were destuffed on previous day from another 1x40’ container alongwith other 68 packages belonging to one Shri Abdulla Abdulla.
(vii) The third lot of two wooden cases was destuffed from a third 40’ container alongwith 45 other packages belonging to one Mr Thomas.
(viii) The single wooden case was destuffed from another 1x40’ container alongwith 90 other packages belonging to one Mohemad Aslam.
Past clandestine removal:
21. In addition to the above, it was also gathered that similar two wooden cases were destuffed from 1x40’container last week which were found to have been delivered by MbPT after clearance of relevant BDF from Customs. The goods were transported out of Green Gate in 2 lorries. One of the lorries carried 60 packages whereas the second lorry carried two packages only. On verification of relevant IGM, 60 packages were found to have been manifested. On enquiry of the destination of the said two lorries from the concerned drivers, it was revealed that the lorry containing 60 packages went to the address of consignee whereas the other lorry went to a warehouse near Reay Road station The said warehouse was located in a residential plot of one Mr Khan. The warehouse was searched but nothing of incriminating nature was found or recovered. The person who engaged and paid for the second lorry (carrying two packages to Reay Road) could not be identified.
22. Enquiries with this consignee revealed that he had transferred his residence from Dubai. All the household goods were packed in 60 packages and shipped to Mumbai. He himself cleared his goods through Customs and transported them in one lorry to his present residence. He denied to have consigned any wooden cases of the description as mentioned above. He also denied to have presented any wooden cases of the description as stated above, to Customs for examination or to have taken delivery from MbPT. He also denied to have engaged any second lorry to transport two packages to any other destination.
Statement of Mr Rajan of consignment of 65+2 packages:
23. Mr Rajan confirmed that he had returned from Dubai in the recent past and transferred his residence. He denied to have shipped any of the said 65+2 packages i.e. he disowned the entire consignment. He also denied to have signed BDF filed in the office of Dy Commissioner of Customs, Unaccompanied Baggage Centre and claimed to be a victim of passport theft.
Statement of Mr Abdulla Abdulla of consignment of 68+2 packages:
24. Mr Abdulla Abdulla claimed the ownership of 68 packages and denied to have booked any wooden case of the description as stated above.
Statement of Mr Thomas of consignment of 45+2 packages:
25. Mr Thomas claimed the ownership of 45 packages and denied to have shipped the 2 wooden cases of the description as stated above.
Statement of Mr Mohemad Aslam of consignment of 90+1 packages:
26. Mr Mohemad Aslam claimed the ownership of 90 packages and denied to have shipped 1 wooden cases of the description as stated above.
Seizure of goods:
27. All the said seven wooden crates were opened and examined in presence of independent witnesses. The said wooden cases were found to contain fast moving consumer goods such as perfumes, body spray etc collectively valued at Rs 50 lakhs. These goods were seized and warehoused in ‘A’ warehouse of Mumbai Customs.
Modus operandii:
28. Based on intensive investigations in the case, it appeared that FCL containers were hired by genuine persons in Dubai. They loaded their household goods in the containers and handed over sealed container to the freight forwarder/shipping agent. The wooden cases were stuffed in such containers on way to the warehouse of freight forwarder /shipping agent without the knowledge of actual consignor/consignee by unscrupulous elements. On de-stuffing the container in Mumbai docks, marker of stevedore was to omit marking of container no./IGM no. on the packages of smuggling syndicate which were distinct from other packages by way of their packing and no marks. The Assistant Shed Superintendent was instrumental in warehousing of such unmarked packages at a place other than the place of storage of marked packages. As such, such huge cases were not presented to Customs for examination. The marked packages were examined and allowed clearance. At the time of delivery of goods by MbPT employees, one extra gate pass was made for the wooden cases which destination was a private warehouse at Reay Road as per past record. In this sensational case of clandestine removal of dutiable from under the nose of MbPT and Customs, the marker of stevedore, Assistant Shed Superintendent of MbPT and 3 employees of Customs Brokers were arrested for their complicity in the acts of omission and commission of smuggling syndicate.
29. A bulky show cause notice was issued to several noticees. The case was adjudicated by Commissioner of Customs Shri Ramesh Ramchandran.
30. This case became the mother of several other cases which include a case of substitution of high end luxury cars with old and used cars of scrap value. This case will be covered in next story.
(The above story is based on true facts of a case of CIU with me as Investigating Officer. Some of the facts are changed as I could recollect. Pradeep Kumar Gupta. Retired Assistant Commissioner)
This is a story of clandestine import of fast moving consumer goods (FMCG) by misusing the facility of unaccompanied baggage of Mumbai port by certain unscrupulous elements. The clandestine import of consumer goods was facilitated by certain employees of Customs Brokers and employees of MbPT operating from 1 uncleared Indira Docks, Mumbai in financial year 1999-2000. The case was detected by the Central Intelligence Unit (CIU) of New Custom House, Mumbai Customs Zone, Mumbai.
Recording of information:
1. In year 1999-2001, I was posted in CIU as a Superintendent. I was one of the members of a vibrant young team of Preventive Oficers, Examiners, Superitendents and Appraisers. The team was led by a young Dy Commissioner named Mr G Rabindranath. His best quality was that he used to absorb the pressures at his level and never let it percolate down to us. This nature provided space for free and fair investigations in the cases handled by us. The team was full of enthusiasm and strived hard to achieve true milestones of every investigation at hand. CIU team also had good coordination with the team of the Directorate of Vigilance, West Zone, Mumbai. The CIU team working raised the credibility of the entire CIU unit in the eyes of public getting services from Mumbai Customs Zone-I officers. One such public person passed information (sometimes in November-1999) to us through a contact developed by the Directorate of Vigilance. The information revealed that seven large wooden cases loaded with the dutiable consumer goods had been shipped from Dubai by mixing with genuine FCL consignment of household goods entered as unaccompanied baggage. It was further revealed that the said seven cases were warehoused at 1 uncleared Indira Docks, Mumbai, (notified as unaccompanied baggage Centre) and were likely to be removed clandestinely in connivance with MbPT staff.
Immediate action taken:
2. The actionable input of this information needed immediate identification of the seven wooden cases and their removal to safety. The information was received at about 5 p m. In immediate response, I alongwith several other officers moved to Mumbai docks area. The goods cleared from 1 uncleared Indira Docks used to be transported to Green Gate for passing out to local destinations. But, in the vicinity, there were two other gates: (i) Grey Gate was closed at that time; (2) Blue Gate was to remain open upto mid night. Not to take any chances, CIU officers kept survelliance on all passing out vehicles at all gates of Indira Docks and on the vehicles being loaded outside 1 uncleared Indira Docks.
Identification of the smuggled goods:
3. After ensuring preventive measures as above, I alongwith other CIU officers, went inside the MbPT warehouse at 1 uncleared ID. There we inspected the lots destuffed from FCL containers. We observed that the packages belonging to one consignee were bearing the same IGM no. and container no.. But, we found 2 large wooden cases (of the size of almost 4 normal steel cupboards in length, width and height) each at three different places and one large wooden case at fourth place inside the said godown. Thus, in all seven large wooden cases without any marks were identified to be the suspected packages of offending goods. All the said seven wooden cases were almost similar in size and without any marks or nos. These seven wooden cases were not even bearing the container no. and IGM no. All the said packages were kept on hold and were securely kept in the cage inside the godown.
On spot enquiry:
4. On spot enquiry with the shed incharge, it was gathered that MbPT have appointed a stevedore to destuff the goods from FCL containers (of unaccompanied baggage) arriving at 1 Uncleared ID. It was the job of stevedore’s marker to mark container no. and IGM no. on each package de-stuffed from every container and Asstt. Shed Superintendent (of MbPT) was there to ensure that all such marked packages (belonging to one consignee) were stored at one place inside the godown for presentation to Customs for examination together. In absence of marking of IGM no. and container no. on the said seven wooden cases, it was difficult to ascertain the name of the consignee or to ascertain whether any Baggage Declaration Form was filed in the office of the Dy Commissioner of Customs, Unaccompanied Baggage Centre covering any one or all the said suspected packages.
Identification of container no. and IGM no.:
5. In order to ascertain the IGM no. and container no., immediate interrogation of the (i) the Mukaddam of labour gang concerned with destuffing, (ii) Stevedore’s marker concerned with marking of packages; and (iii) Assistant Shed Superintendent concerned with warehousing of marked packages, appeared to be essential to unfold the criminal conspiracy of landing unauthorized goods in Mumbai docks. On interrogation of these persons and verification of relevant tally sheets pertaining to destuffing of goods from the FCL containers, container no./IGM no. were identified. Their interrogation was very informative and revealed as below:
(i) Two wooden cases stored at an obscure place in the godown were destuffed from 1x40’ container on that day itself alongwith another 65 packages belonging to one Mr Rajan.
(ii) The other two wooden cases were destuffed on previous day from another 1x40’ container alongwith other 68 packages belonging to one Shri Abdulla Abdulla.
(iii) The third lot of two wooden cases was destuffed from a third 40’ container alongwith 45 other packages belonging to one Mr Thomas.
(iv) The single wooden case was destuffed from another 1x40’ container alongwith 90 other packages belonging to one Mohemad Aslam.
Past clandestine removal:
6. In addition to the above, it was also gathered that similar two wooden cases were destuffed from 1x40’container last week which were found to have been delivered by MbPT after clearance of relevant BDF from Customs. The goods were transported out of Green Gate in 2 lorries. One of the lorries carried 60 packages whereas the second lorry carried two packages only. On verification of relevant IGM, 60 packages were found to have been manifested. On enquiry of the destination of the said two lorries from the concerned drivers, it was revealed that the lorry containing 60 packages went to the address of consignee whereas the other lorry went to a warehouse near Reay Road station The said warehouse was located in a residential plot of one Mr Khan. The warehouse was searched but nothing of incriminating nature was found or recovered. The person who engaged and paid for the second lorry (carrying two packages to Reay Road) could not be identified.
7. Enquiries with this consignee revealed that he had transferred his residence from Dubai. All the household goods were packed in 60 packages and shipped to Mumbai. He himself cleared his goods through Customs and transported them in one lorry to his present residence. He denied to have consigned any wooden cases of the description as mentioned above. He also denied to have presented any wooden cases of the description as stated above, to Customs for examination or to have taken delivery from MbPT. He also denied to have engaged any second lorry to transport two packages to any other destination.
Statement of Mr Rajan of consignment of 65+2 packages:
8. Mr Rajan confirmed that he had returned from Dubai in the recent past and transferred his residence. He denied to have shipped any of the said 65+2 packages i.e. he disowned the entire consignment. He also denied to have signed BDF filed in the office of Dy Commissioner of Customs, Unaccompanied Baggage Centre and claimed to be a victim of passport theft.
Statement of Mr Abdulla Abdulla of consignment of 68+2 packages:
9. Mr Abdulla Abdulla claimed the ownership of 68 packages and denied to have booked any wooden case of the description as stated above.
Statement of Mr Thomas of consignment of 45+2 packages:
10. Mr Thomas claimed the ownership of 45 packages and denied to have shipped the 2 wooden cases of the description as stated above.
Statement of Mr Mohemad Aslam of consignment of 90+1 packages:
11. Mr Mohemad Aslam claimed the ownership of 90 packages and denied to have shipped 1 wooden cases of the description as stated above.
Seizure of goods:
12. All the said seven wooden crates were opened and examined in presence of independent witnesses. The said wooden cases were found to contain fast moving consumer goods such as perfumes, body spray etc collectively valued at Rs 50 lakhs. These goods were seized and warehoused in ‘A’ warehouse of Mumbai Customs.
Modus operandii:
13. Based on intensive investigations in the case, it appeared that FCL containers were hired by genuine persons in Dubai. They loaded their household goods in the containers and handed over sealed container to the freight forwarder/shipping agent. The wooden cases were stuffed in such containers on way to the warehouse of freight forwarder /shipping agent without the knowledge of actual consignor/consignee by unscrupulous elements. On de-stuffing the container in Mumbai docks, marker of stevedore was to omit marking of container no./IGM no. on the packages of smuggling syndicate which were distinct from other packages by way of their packing and no marks. The Assistant Shed Superintendent was instrumental in warehousing of such unmarked packages at a place other than the place of storage of marked packages. As such, such huge cases were not presented to Customs for examination. The marked packages were examined and allowed clearance. At the time of delivery of goods by MbPT employees, one extra gate pass was made for the wooden cases which destination was a private warehouse at Reay Road as per past record. In this sensational case of clandestine removal of dutiable goods from under the nose of MbPT and Customs, the marker of stevedore, Assistant Shed Superintendent of MbPT and 3 employees of Customs Brokers were arrested for their complicity in the acts of omission and commission of smuggling syndicate.
14. A bulky show cause notice was issued to several noticees. The case was adjudicated by Commissioner of Customs Shri Ramesh Ramchandran.
15. This case became the mother of several other cases which include a case of substitution of high end luxury cars with old and used cars of scrap value. This case will be covered in next story.
(The above story is based on true facts of a case of CIU with me as Investigating Officer. Some of the facts are changed as I could recollect. Pradeep Kumar Gupta. Retired Assistant Commissioner)
Clandesstine import and removal of FMCG goods by misusing unaccompanied baggage facility in Mumbai port in year 1999:
This is a story of clandestine import of fast moving consumer goods (FMCG) by misusing the facility of unaccompanied baggage of Mumbai port by certain unscrupulous elements. The clandestine import of consumer goods was facilitated by certain employees of Customs Brokers and employees of MbPT operating from 1 uncleared Indira Docks, Mumbai in financial year 1999-2000. The case was detected by the Central Intelligence Unit (CIU) of New Custom House, Mumbai Customs Zone, Mumbai.
Recording of information:
16. In year 1999-2001, I was posted in CIU as a Superintendent. I was one of the members of a vibrant young team of Preventive Oficers, Examiners, Superitendents and Appraisers. The team was led by a young Dy Commissioner named Mr G Rabindranath. His best quality was that he used to absorb the pressures at his level and never let it percolate down to us. This nature provided space for free and fair investigations in the cases handled by us. The team was full of enthusiasm and strived hard to achieve true mile stones of every investigation at hand. CIU team also had good coordination with the team of the Directorate of Vigilance, West Zone, Mumbai. The CIU team working raised the credibility of the entire CIU unit in the eyes of public getting services from Mumbai Customs Zone-I officers. One such public person passed information (sometimes in November-1999) to us through a contact developed by the Directorate of Vigilance. The information revealed that seven large wooden cases loaded with the dutiable consumer goods had been shipped from Dubai by mixing with genuine FCL consignment of household goods entered as unaccompanied baggage. It was further revealed that the said seven cases were warehoused at 1 uncleared Indira Docks, Mumbai, (notified as unaccompanied baggage Centre) and were likely to be removed clandestinely in connivance with MbPT staff.
Immediate action taken:
17. The actionable input of this information needed immediate identification of the seven wooden cases and their removal to safety. The information was received at about 5 p m. In immediate response, I alongwith several other officers moved to Mumbai docks area. The goods cleared from 1 uncleared Indira Docks used to be transported to Green Gate for passing out to local destinations. But, in the vicinity, there were two other gates: (i) Grey Gate was closed at that time; (2) Blue Gate was to remain open upto mid night. Not to take any chances, CIU officers kept survelliance on all passing out vehicles at all gates of Indira Docks and on the vehicles being loaded outside 1 uncleared Indira Docks.
Identification of the smuggled goods:
18. After ensuring preventive measures as above, I alongwith other CIU officers, went inside the MbPT warehouse at 1 uncleared ID. There we inspected the lots destuffed from FCL containers. We observed that the packages belonging to one consignee were bearing the same IGM no. and container no.. But, we found 2 large wooden cases (of the size of almost 4 normal steel cupboards in length,width and height) each at three different places and one large wooden case at fourth place inside the said godown. Thus, in all seven large wooden cases without any marks were identified to be the suspected packages of offending goods. All the said seven wooden cases were almost similar in size and without any marks or no.s These seven wooden cases were not even bearing the container no. and IGM no.All the said packages were kept on hold and were securely kept in the cage inside the godown.
On spot enquiry:
19. On spot enquiry with the shed incharge, it was gathered that MbPT have appointed a stevedore to destuff the goods from FCL containers (of unaccompanied baggage) arriving at 1 Uncleared ID. It was the job of stevedore’s marker to mark container no. and IGM no. on each package de-stuffed from every container and Asstt. Shed Superintendent (of MbPT) was there to ensure that all such marked packages (belonging to one consignee) were stored at one place inside the godown for presentation to Customs for examination together. In absence of marking of IGM no. and container no. on the said seven wooden cases, it was difficult to ascertain the name of the consignee or to ascertain whether any Baggage Declaration Form was filed in the office of the Dy Commissioner of Customs, Unaccompanied Baggage Centre covering any one or all the said suspected packages.
Identification of container no. and IGM no.:
20. In order to ascertain the IGM no. and container no., immediate interrogation of the (i) the Mukaddam of labour gang concerned with destuffing,,(ii) Stevedore’s marker concerned with marking of packages; and (iii) Assistant Shed Superintendent concerned with warehousing of marked packages, appeared to be essential to unfold the criminal conspiracy of landing unauthorized goods in Mumbai docks. On interrogation of these persons and verification of relevant tally sheets pertaining to destuffing of goods from the FCL containers, container no./IGM no. were identified. Their interrogation was very informative and revealed as below:
(v) Two wooden cases stored at an obscure place in the godown were destuffed from 1x40’ container on that day itself alongwith another 65 packages belonging to one Mr Rajan.
(vi) The other two wooden cases were destuffed on previous day from another 1x40’ container alongwith other 68 packages belonging to one Shri Abdulla Abdulla.
(vii) The third lot of two wooden cases was destuffed from a third 40’ container alongwith 45 other packages belonging to one Mr Thomas.
(viii) The single wooden case was destuffed from another 1x40’ container alongwith 90 other packages belonging to one Mohemad Aslam.
Past clandestine removal:
21. In addition to the above, it was also gathered that similar two wooden cases were destuffed from 1x40’container last week which were found to have been delivered by MbPT after clearance of relevant BDF from Customs. The goods were transported out of Green Gate in 2 lorries. One of the lorries carried 60 packages whereas the second lorry carried two packages only. On verification of relevant IGM, 60 packages were found to have been manifested. On enquiry of the destination of the said two lorries from the concerned drivers, it was revealed that the lorry containing 60 packages went to the address of consignee whereas the other lorry went to a warehouse near Reay Road station The said warehouse was located in a residential plot of one Mr Khan. The warehouse was searched but nothing of incriminating nature was found or recovered. The person who engaged and paid for the second lorry (carrying two packages to Reay Road) could not be identified.
22. Enquiries with this consignee revealed that he had transferred his residence from Dubai. All the household goods were packed in 60 packages and shipped to Mumbai. He himself cleared his goods through Customs and transported them in one lorry to his present residence. He denied to have consigned any wooden cases of the description as mentioned above. He also denied to have presented any wooden cases of the description as stated above, to Customs for examination or to have taken delivery from MbPT. He also denied to have engaged any second lorry to transport two packages to any other destination.
Statement of Mr Rajan of consignment of 65+2 packages:
23. Mr Rajan confirmed that he had returned from Dubai in the recent past and transferred his residence. He denied to have shipped any of the said 65+2 packages i.e. he disowned the entire consignment. He also denied to have signed BDF filed in the office of Dy Commissioner of Customs, Unaccompanied Baggage Centre and claimed to be a victim of passport theft.
Statement of Mr Abdulla Abdulla of consignment of 68+2 packages:
24. Mr Abdulla Abdulla claimed the ownership of 68 packages and denied to have booked any wooden case of the description as stated above.
Statement of Mr Thomas of consignment of 45+2 packages:
25. Mr Thomas claimed the ownership of 45 packages and denied to have shipped the 2 wooden cases of the description as stated above.
Statement of Mr Mohemad Aslam of consignment of 90+1 packages:
26. Mr Mohemad Aslam claimed the ownership of 90 packages and denied to have shipped 1 wooden cases of the description as stated above.
Seizure of goods:
27. All the said seven wooden crates were opened and examined in presence of independent witnesses. The said wooden cases were found to contain fast moving consumer goods such as perfumes, body spray etc collectively valued at Rs 50 lakhs. These goods were seized and warehoused in ‘A’ warehouse of Mumbai Customs.
Modus operandii:
28. Based on intensive investigations in the case, it appeared that FCL containers were hired by genuine persons in Dubai. They loaded their household goods in the containers and handed over sealed container to the freight forwarder/shipping agent. The wooden cases were stuffed in such containers on way to the warehouse of freight forwarder /shipping agent without the knowledge of actual consignor/consignee by unscrupulous elements. On de-stuffing the container in Mumbai docks, marker of stevedore was to omit marking of container no./IGM no. on the packages of smuggling syndicate which were distinct from other packages by way of their packing and no marks. The Assistant Shed Superintendent was instrumental in warehousing of such unmarked packages at a place other than the place of storage of marked packages. As such, such huge cases were not presented to Customs for examination. The marked packages were examined and allowed clearance. At the time of delivery of goods by MbPT employees, one extra gate pass was made for the wooden cases which destination was a private warehouse at Reay Road as per past record. In this sensational case of clandestine removal of dutiable from under the nose of MbPT and Customs, the marker of stevedore, Assistant Shed Superintendent of MbPT and 3 employees of Customs Brokers were arrested for their complicity in the acts of omission and commission of smuggling syndicate.
29. A bulky show cause notice was issued to several noticees. The case was adjudicated by Commissioner of Customs Shri Ramesh Ramchandran.
30. This case became the mother of several other cases which include a case of substitution of high end luxury cars with old and used cars of scrap value. This case will be covered in next story.
(The above story is based on true facts of a case of CIU with me as Investigating Officer. Some of the facts are changed as I could recollect. Pradeep Kumar Gupta. Retired Assistant Commissioner)