Customs Fraud Case: CBI Court Convicts Former Excise Inspector

Bribery case

The CBI Court in Visakhapatnam has convicted and sentenced 3 accused, including a former Inspector of Central Excise and Customs, in a ₹32.28 crore fraud case, the Central Bureau of Investigation said in a statement on Wednesday.

Those convicted are Kalaka Ramdas, then Inspector of Central Excise and Customs, Srikakulam Range; Polaki Janakiram of Vandragi village in Srikakulam district; and a private company. Each has been awarded 5 years of imprisonment.

Fines Imposed

Along with jail terms, the court also imposed fines:

₹1,01,000 on Kalaka Ramdas

₹2,51,000 on Polaki Janakiram

₹2,01,000 on the company

In total, fines of ₹5.53 lakh were imposed.

The Conspiracy

According to the CBI, the fraud dates back to 2005, when Janakiram, impersonating as Palla Kesava Rao, conspired with Ramdas and floated a fake firm, M/s Sri Balaji General Trading Company (SBGTC).

Janakiram forged documents and signatures in the name of the fictitious Kesava Rao to obtain a Trading License and Import-Export Code from the Visakhapatnam Special Economic Zone (VSEZ). He also applied to the Central Excise Department to declare the firm’s premises as a warehousing station under the Customs Act.

Fraudulent Procurement & Export

Using the fraudulent setup, Janakiram procured duty-free materials from firms in Maligaon and cleared them as deemed exports to companies in Mumbai against Advance Release Orders (AROs).

This was done in violation of EXIM Policy Guidelines, and investigators found that Ramdas, then Inspector of Central Excise & Customs, colluded with Janakiram in the process. Together, they caused a loss of ₹32.28 crore to the government by evading excise and customs duties.

Investigation & Conviction

The CBI had registered the case on August 30, 2005 and filed a charge sheet on August 29, 2008 after completing its investigation.

Following a detailed trial, the court held the accused guilty and pronounced the judgment. After conviction, Ramdas and Janakiram were sent to Central Prison, Visakhapatnam.

The conviction marks a significant outcome in one of the largest excise and customs frauds unearthed in Andhra Pradesh.