The Directorate General of Intelligence and Investigation of the Federal Board of Revenue (FBR) has unearthed an alleged duty and tax evasion of Rs716.27 million related to the clearance of steel bars at Hyderabad Collectorate.
As reported by Dawn, the steel bars were originally cleared at the Hyderabad Collectorate and later identified as being used in a construction project in Karachi. Karachi’s Customs Intelligence Regional Office has registered an FIR against the accused.
As of June 30, 2023, the calculated surcharge amounted to Rs665.31 million, with the total value of the cleared goods reaching Rs2.178 billion.
Initial investigations suggest that the accused may have committed a predicate offense by allegedly exploiting another company which is suspected of being involved in the unauthorized removal of 14,392 tonnes of iron and steel waste, scrap, and silico manganese from a private bonded warehouse.
A detailed inventory check revealed that only 3,761 tonnes of these goods remained, along with an estimated remaining stock of 700 to 1,000 tonnes, which falls short of the 18,854 metric tonnes recorded on March 20, 2023. This discrepancy suggests that 14,392 metric tonnes of in-bonded goods valued at Rs2.17 billion may have been removed without fulfilling the necessary duty and tax.
The report also mentions allegations of money laundering. The accused are suspected of using the “proceeds of crime” to finance the development of the Karachi-based project, HSJ ICON, with funds originating from HSJ Metals (Pvt) Ltd, which were intended for the government exchequer.
The report further details that individuals managing two interconnected entities are under scrutiny. One entity is associated with the generation of alleged illicit proceeds, while the other is believed to be involved in their placement and integration. This was facilitated through an unregistered entity that does not file tax returns and acts as an intermediary.
Customs Intelligence has claimed that the entire operation may have led to money laundering amounting to Rs3.55 billion, which includes evaded duty/taxes, surcharges, and the value of the goods.
