Mumbai

A major customs duty evasion scam involving the import of walnuts has been uncovered at Nhava Sheva in Navi Mumbai, with investigators estimating a revenue loss of nearly ₹138.84 crore. Officials said five people have been arrested so far in connection with the case.

The fraud came to light during Operation CO-FIND, launched by the Central Intelligence Unit (CIU) of the Jawaharlal Nehru Customs House (JNCH) following specific intelligence inputs.

According to investigators, walnut consignments sourced from China, the United States and Chile were routed through Jebel Ali in the UAE and falsely declared as products originating from Afghanistan. The alleged misrepresentation enabled importers to claim preferential tariff benefits available under the South Asian Free Trade Agreement (SAFTA).

Officials said the scheme reduced the applicable customs duty on walnuts from around 110 per cent to nearly 5 per cent, resulting in substantial revenue losses to the exchequer.

The probe revealed that forged transit bills of lading were allegedly created to show that the consignments had moved from Bandar Abbas in Iran to Jebel Ali, thereby fabricating a transit route intended to support false claims of Afghan origin.

Subsequent searches at multiple locations across Mumbai led to the seizure of significant documentary and digital evidence. Investigators have so far arrested five individuals linked to the operation.

Among those arrested is Sneh Dipakbhai Kakadiya, son of Surat-based businessman Dipakbhai Kakadiya. He was taken into custody on June 12. Authorities allege that he played a key role in financing, procurement, customs clearance and sale of the imported goods through proxy importers. He has been remanded to judicial custody for 12 days.

Investigators also carried out a country-wise analysis of walnut imports through JNCH and found a sharp and unusual rise in consignments declared as originating from Afghanistan during the period under scrutiny. This surge was followed by a sudden decline, a pattern officials said was inconsistent with normal trade trends and indicative of possible manipulation.

Authorities noted that the alleged fraud not only caused significant losses to government revenue but also adversely affected legitimate traders and walnut growers in states such as Jammu and Kashmir, Himachal Pradesh, Uttarakhand and Arunachal Pradesh by allowing artificially cheaper imports into the market.

In a related legal development, the Bombay High Court recently refused to grant blanket relief for the release of seized consignments claimed to be of Afghan origin. The court permitted conditional release only after payment of the full differential duty amounting to ₹2.78 crore or submission of an equivalent bank guarantee, thereby backing the customs department’s authority to secure revenue interests before clearance.

READ MORE: Fatima Husna proudly guides tourists through Hyderabad's history

Officials said investigations are continuing to identify all beneficiaries, facilitators, financial connections and additional consignments linked to the alleged racket.