Lok Sabha Question No. 5793 (UNSTARRED), answered on 2017-04-10
Subject: Irregularities in Export Figures
Ministry: COMMERCE AND INDUSTRY
Asked by: KIRTI (JHA) AZAD

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 5793(H) TO BE ANSWERED ON 10 th  APRIL, 2017

## IRREGULARITIES IN EXPORT FIGURES

## 5793(H). SHRI KIRTI AZAD:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) whether  any  case  has  come  to  the  notice  of  the  Government  wherein  a  firm  has shown  very  unrealistic  figures  about  its  export  for  availing  financial  benefits  of various  export  promotion  schemes  started  by  the  Directorate  General  of  Foreign Trade (DGFT) during the last three years and the current year;
- (b) if so, the details thereof along with the reaction of the Government thereto;
- (c) whether any follow-up action has been taken by the Government in this regard; and
- (d) if so, the details thereof?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)

(SMT. NIRMALA SITHARAMAN)

- (a) &(b) As per reports available, some exporters are found to have artificially inflated  their  exports  to  avail  financial  benefits  during  the  last  three years. A list of such cases alongwith action taken thereof is attached as Annexure 'A'.
- (c) & (d) The  Regional  Office  concerned  has  taken  appropriate  action  under Foreign Trade (Development& Regulation) Act, 1992 including cancelling the Duty Credit Scrips and imposing penalty in such cases.

## The list of Exporters who have artificially inflated their exports to avail financial benefits from various export promotion schemes during the last four years

## 1. From 1.4.2013 to 31.3.2014

|   Sl. No. | Name of the Firm                    | Action taken                                                                                                                                         |
|-----------|-------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|         1 | M/s. R.R. World(IEC No. 0308005325) | Adjudication order dated 14.03.2014 issued cancelling DEPB and VKGUY Scrips issued to the firm. Also penalty of Rs. 10.00 lakhs imposed on the firm. |

2. From 1.4.2014 to 31.3.2015 Nil
3. From 1.4.2015 to 31.3.2016

|   Sl. No. | Name of the Firm                                   | Action taken                                                                                                          |
|-----------|----------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|
|         1 | M/s. Nayasa Exports Pvt. Ltd. (IEC No. 0303016990) | Adjudication order dated 07.08.2015 issued cancelling DEPB issued and penalty of Rs. 25.00 lakhs imposed on the firm. |

## 4. From 1.4.2016 to 31.3.2017

|   Sl. No. | Name of the Firm                                       | Action taken                                                                                                          |
|-----------|--------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|
|         1 | M/s. R.k. Enterprises (IEC No. 0311087469)             | Adjudication order dated 29.04.2016 issued cancelling FMS/FPS scrips. Penalty of Rs. 50.00 lakhs imposed on the firm. |
|         2 | M/s. Raj Enterprises (IEC No. 0398055688)              | -Do- Penalty of Rs. 7,00,000/- imposed.                                                                               |
|         3 | M/s. Sai Smruti Trading Pvt. Ltd. (IEC No. 0312080255) | -Do- Penalty of Rs. 20.00 Lakhs imposed.                                                                              |
|         4 | M/s. CRM International (IEC No. 0312077751)            | -Do- Penalty of Rs. 15.00 Lakhs imposed.                                                                              |
|         5 | M/s. Vidhi Traders (IEC No. 0312080255)                | -Do- Penalty of Rs. 15.00 Lakhs imposed.                                                                              |
|         6 | M/s. R.B. Agencies (IEC No. 0309079543)                | -Do- Penalty of Rs. 25.00 Lakhs imposed.                                                                              |
|         7 | M/s. Swastik Trading Co. (IEC No. 0311066054)          | -Do- Penalty of Rs. 10.00 Lakhs imposed.                                                                              |
|         8 | M/s. Vincy International (IEC No. 0312003811)          | -Do- Penalty of Rs. 80.00 Lakhs imposed.                                                                              |
|         9 | M/s. K.A.M Enterprises (IEC No. 0312019947)            | -Do- Penalty of Rs. 35.00 Lakhs imposed.                                                                              |
|        10 | M/s. Manfred International (IEC No. 0312026358)        | Penalty of Rs. 75.00 Lakhs imposed imposed                                                                            |
|        11 | M/s. Venity Trading (IEC No. 0312012438)               | -Do- Penalty of Rs. 45.00 Lakhs imposed.                                                                              |

|   12. | M/s. R.S.P International (IEC No. 0312043015)          | -Do- Penalty of Rs. 45.00 Lakhs imposed.   |
|-------|--------------------------------------------------------|--------------------------------------------|
|    13 | M/s. Roopa Industries (IEC No. 0312040938)             | -Do- Penalty of Rs. 30.00 Lakhs imposed.   |
|    14 | M/s. M.S. International (IEC No. 0312032081)           | -Do- Penalty of Rs. 50.00 Lakhs imposed.   |
|    15 | M/s. M.K. Traders (IEC No. 0312031220)                 | -Do- Penalty of Rs. 35.00 Lakhs imposed.   |
|    16 | M/s. R.R. Trading (IEC No. 0312031203)                 | -Do- Penalty of Rs. 35.00 Lakhs imposed.   |
|    17 | M/s. M.B. Enterprises (IEC No. 0312026340)             | -Do- Penalty of Rs. 50.00 Lakhs imposed.   |
|    18 | M/s. M.R. Enterprises (IEC No. 0312012501)             | -Do- Penalty of Rs. 30.00 Lakhs imposed.   |
|    19 | M/s. M.S. Overseas (IEC No. 0311088783)                | -Do- Penalty of Rs. 50.00 Lakhs imposed.   |
|    20 | M/s. Valiant Traders (IEC No. 0311088638)              | -Do- Penalty of Rs. 25.00 Lakhs imposed.   |
|    21 | M/s. V.V. Trading (IEC No. 0311080596)                 | -Do- Penalty of Rs. 40.00 Lakhs imposed.   |
|    22 | M/s. Vin Max Enterprises (IEC No. 0311078818)          | -Do- Penalty of Rs. 50.00 Lakhs imposed.   |
|    23 | M/s. Virat Trading (IEC No. 0311068430)                | -Do- Penalty of Rs. 50.00 Lakhs imposed.   |
|    24 | M/s. VJM Infra Projects Pvt. Ltd. (IEC No. 0311036180) | -Do- Penalty of Rs. 1.50 crores imposed.   |
|    25 | M/s. VRL Enterprises (IEC No. 0311022189)              | -Do- Penalty of Rs. 50.00 Lakhs imposed.   |