Gujarat trader arrested for customs duty evasion in walnut imports

By Admin

28 Jun, 2025

In a major crackdown on customs fraud, the Directorate of Revenue Intelligence (DRI) has arrested Sneh Dipakbhai Kakadiya, a Gujarat-based trader, for his alleged involvement in a ₹44 crore customs duty evasion racket related to walnut imports from Chile.

Modus Operandi Uncovered
Kakadiya, along with his father Dipak Kakadiya, is accused of masterminding a large-scale under-invoicing scheme. Operating through multiple firms M/s Angel Enterprise and M/s Dipak Trading Co. the duo allegedly imported massive consignments of Chilean inshell walnuts by grossly misdeclaring their value to Indian Customs.

Investigators say the basic customs duty (BCD) applicable to inshell walnuts stands at 100% of the assessable value. By manipulating invoice values, the group was able to evade this duty on over 3,610 metric tonnes of imported walnuts.

False Invoicing via Dubai Intermediary
According to the DRI, the Kakadiyas routed original invoices from Chilean exporters through a Dubai-based intermediary firm, M/s Euro Seven General Trading LLC. These genuine invoices showing prices of $2.70 per kg were swapped with fabricated undervalued invoices quoting just $1.50 per kg, allowing the group to pay significantly lower customs duty upon import clearance.

Evidence Seized
DRI officers conducted an extensive digital and document-based investigation, seizing email communications, original and forged invoices, and insurance certificates from Kakadiya’s accounts. These materials served as critical evidence in establishing the scope and intent of the fraud.

The agency also suspects that the proceeds from this evasion were laundered through hawala channels, a claim supported by Kakadiya’s refusal to disclose the financial trail during questioning.

Attempt to Flee and Risk to Investigation
In its remand plea, the DRI emphasized the risk of digital evidence being tampered with or witnesses being influenced. Kakadiya was intercepted at Surat International Airport on June 25 while allegedly attempting to flee the country, further reinforcing concerns of absconding.

Legal Action Initiated
Kakadiya has been booked under various sections of the Customs Act, and the investigation continues into the full extent of the operation and its financial network. Authorities are now probing deeper into the roles played by associated firms and international partners.