Mumbai: The Central Intelligence Unit (CIU), Jawaharlal Nehru Custom House (JNCH), Nhava Sheva of the Customs have arrested a Surat-based businessman for his involvement in an alleged international import racket involving forged shipping documents, fake declarations and the wrongful availing of duty exemptions, leading to an estimated loss of more than Rs 31.48 crore to the government exchequer.
According to the Customs sources, specific intelligence was received regarding the fraudulent import of walnuts cleared through the Jawaharlal Nehru Port Trust (JNPT). The subsequent probe revealed that walnuts originating from China, the USA, and Chile were fraudulently declared as originating from Afghanistan in order to illicitly claim preferential Customs duty exemptions under the South Asian Free Trade Area (SAFTA) notifications. Investigations at the premises of a Mumbai-based company resulted in the seizure of forged transit Bills of Lading showing fake transshipments from Bandar Abbas Port (Iran) to Jebel Ali Port (UAE).
"Probe further revealed that 43 Bills of Entry were filed under the name of a front entity utilizing its Import Export Code (IEC) to evade customs duty totaling Rs. 31.48 crore. The proprietor of the said front entity in his statement revealed that he was a mere puppet who lacked the financial capability or expertise for such imports. He stated that one S.D. Kakadiya from Surat was the actual beneficial owner and mastermind who established and controlled the front entity. The complex layering of transactions through multiple bank accounts involved in the case requires deeр investigation," said a Customs official.
Kakadiya was arrested on June 12 and was produced before the Chief Judicial Magistrate (CJM), Surat, Gujarat where the agency sought his transit remand. Upon physical production, the court made personal inquiries with the accused regarding his treatment. The accused categorically stated that he has no complaint of ill-treatment or physical harassment at the hands of the investigating agency.
He was produced before the court in Mumbai on Saturday where Customs sought his remand. Advocates Sujay Kantawala, Pratik Karande and Aditya Talpade appeared for the accused before the court. The counsels opposed remand contending that their client had been under the effective custody of Customs since 7:30 a.m. on 11.06.2026, was illegally detained overnight, and produced beyond 24 hours. However, the magistrate rejected the objections and remanded the accused to judicial custody till 25.06.2026.
