Directorate of Revenue Intelligence (DRI) officials on Friday arrested a Bhandup based businessman for allegedly smuggling secondary cold-rolled grain-oriented (CRGO) steel, import of which is banned by the Government of India in 2014 and thereby evading Customs duty of Rs 7.17 crore. The businessman had been procuring the said secondary CRGO from Germany and Sweden based suppliers, agency sources claimed. The arrested person has been identified as Narendra Purohit (29). He had been in business of CRGO steel since 2011. According to the DRI, specific information was received by them that M/s Shree Chamunda Enterprises, a proprietor firm of Purohit was importing secondary CRGO sheets and coils by misleading the same as prime coils. Such consignments were accompanied with Mill Test Certificate (MTC) which fulfill the specifications of Bureau of Indian Standards (BIS). However, forged documents were submitted to Custom authorities at the time of clearance. "Only prime CRGO sheets or coils which qualify the specifications of BIS are allowed to be imported and whereas secondary CRGO which does not meet the criteria of the standards of BIS are not permitted to be imported. CRGO steel is used in the manufacturing of electrical transformer. Substandard sheets cause frequent breakdown of transformers and reduce their running life. But they are cheaper and hence preferred. Power distribution transformers using second grade electrical sheets run for just three to four years against the industry norm of 20-25 years. India is known as international graveyard of such second grade sheets. "In 2014 Purohit came in contact with few Germany and Sweden based firm that deal in trading of secondary CRGO. Purohit has imported over 14,000 metric tonnes of CRGO sheets thereby evading customs duty of around Rs 7.17 crore," said the official. Case File Businessman arrested for smuggling secondary cold-rolled grain-oriented (CRGO) steel, import of which is banned by the Government of India in 2014 and evading Customs duty of Rs 7.17 cr.

Stay updated with all the Mumbai Latest News headlines here. For more exclusive & live news updates from all around India, stay connected with NYOOOZ.