Newsprint import scam uncovered in Delhi
Ajmer Singh
Saturday, December 31, 2005 (New Delhi):

A multicrore newsprint racket was busted at the Inland Container Depot
at Tughlakabad on Friday. 

Officials of the Department of Revenue Intelligence (DRI) in Delhi
raided the depot and dug up the scam that runs into several crores.
Soon after the racket was uncovered, DRI offices across the country were
alerted with searches in ports across India.

Newsprint is a restricted item and newspapers registered with the
Registrar of News India (RNI) can import it at a concessional customs
duty of five per cent.

Tax evasion
But for non-RNI certificate holders and for importers of other types of
paper, a 35 per cent customs duty is levied.  DRI sources say that
high-quality paper used in photo films, tissue paper for medicinal
packing and wallpaper were amongst those being passed off as newsprint
to evade the 35 per cent customs duty. 

According to sources in the DRI, at least a hundred small and medium
news organisations could be implicated in the racket.  They say the RNI
certificate was being misused for newsprint import and some news
organisations were charging Rs 40,000 per container from buyers in the
open market.

According to the export-import policy, these restricted items are for
registered users and not for sale in the open market.  Many actual
beneficiaries have been arrested and many news organisations will now be
questioned by the Revenue Intelligence authorities.

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