Vinod Kumar Menon gets to the bottom of the multi-crore superbike scam and how the syndicate may be hands-in-glove with the RTO
Vinod Kumar Menon gets to the bottom of the multi-crore superbike scam and how the syndicate may be hands-in-glove with the RTO
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The Mumbai police's seizure of eight superbikes on Tuesday has added another layer to what is turning out to be a murky multi-crore scam. The Directorate of Revenue Intelligence (DRI) is now investigating 600 imported bikes as well as the RTO offices in Mumbai and Raigad they have been registered in.
DRI believes most of these bikes have been registered under fictitious names using forged customs papers and documents in connivance with RTO officials.u00a0
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The first tip off
On February 28, DRI conducted raids at 22 locations in Mumbai and Pune acting on a tip off. They arrested Shailesh Redzy, proprietor of Chauhan driving school, Imran Chauhan and Sahid Mirza. The mastermind, Nadir Ali, is absconding.
Inquiries with the RTO and inspection of documents such as customs bills, type approval certificates (confirming the bikes can ply on Indian roads) and personal documents (passport, ration cards) used for registering the superbikes revealed that the paperwork was forged.
According to the arrested accused, they would purchase 10 to 12 bikes at a time from Singapore, at rates three times cheaper than the selling price. Most of the Japanese bike manufacturers (Suzuki, Honda) do not have authorised agencies in India.u00a0u00a0
Break up
Inquiries have revealed that the bikes were disabled and imported as spare parts under the names of fictitious importers to evade hefty taxation (see box). On arrival, the spare parts are transported by road to the destination, where mechanics reassemble them for a mere Rs 3,000 to Rs 5,000.
Faking it
Once the bike is reassembled, it is registered with the RTO. Investigations revealed that original documents, which were submitted at the Chauhan driving school by genuine learners for procuring a driving license, were misused for registration by the proprietor of the driving school Imran Chauhan. Most of these registrations were done at Andheri and Pen RTOs, bringing the staffers under the scanner.
According to DRI officials, many of the learners who were questioned, were unaware that a superbike was registered under their name.
A staff member at the Chauhan driving school in Andheri, however, denied having any knowledge about the case. He only said they had 14 driving schools in the city and that Imran was the son of his employer Iqbal Chauhan.
Duty evasion
Importing spare parts invites a duty of 24 per cent as compared to the massive 105 per cent duty levied on new bikes. Apart from the customs duty, this method also deprives the state exchequer of transport tax, sales tax and octroi, which is applicable if the complete bike is imported.
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