The Enforcement Directorate (ED), Mumbai, on Friday recorded the statement of Vikas Garg, chairman of Ebix Cash, after an eight-hour-long questioning in a Rs 190-crore alleged customs duty evasion and money laundering case.
The Delhi-based industrialist had been summoned under the Prevention of Money Laundering Act (PMLA) and asked to appear before the agency’s Mumbai zonal office at Ceejay House, Worli, at 10 am on Friday.
Garg’s name had earlier surfaced in the ED’s probe into the Mahadev betting app. In April, the agency conducted searches at his premises in connection with the case.ED investigation had then alleged that Garg was using proceeds of crime from the Mahadev syndicate to manipulate and rig share prices of some stocks in India.
ED officials said Garg is considered a key link in the alleged tax evasion and money laundering network connected to imports. He is under investigation for allegedly importing 1,077.99 metric tonnes of duty-free PVC resin and betel nuts between 2015 and 2017 using allegedly forged import-export documents. According to the probe, consignments meant for export or re-export to Nepal, Bhutan, and Bangladesh were allegedly diverted into the domestic market, resulting in an estimated revenue loss of around Rs 190 crore.
Garg is under scrutiny for his alleged links to five UAE-based companies suspected of facilitating fabricated import-export transactions. Sources said the investigation indicates that Garg has been associated with these firms, which are alleged to have prepared the fabricated export documents, invoices and shipping bills showing consignments being sent via land customs stations in India to Nepal, Bhutan and Bangladesh.However, investigators found that the exports existed only on paper, with the goods allegedly diverted into the domestic market, including to trading firms in Nagpur and Delhi. Most of these transactions were carried out in cash, causing an estimated loss of around Rs 190 crore to the government.
The summons follows ED searches conducted on November 13 at premises linked to Garg, Titan Sea & Air Services, and other associated entities. Officials seized incriminating documents and digital devices from Garg, directors of Titan Sea & Air, and employees suspected of aiding in the creation of overseas entities to facilitate import-export transactions.
ED recorded Garg’s statement on financial transactions flagged during the probe into alleged fraud involving illegal imports and financial dealings.
Investigators said both commodities fall under strict regulatory scrutiny. While PVC resin imports are allowed but monitored through basic customs duty and anti-dumping norms, making duty-free entry without proper documentation a violation.Meanwhile betel nuts are regulated under the Plant Quarantine Order and Directorate General of Foreign Trade rules, with several restrictions and periodic prohibitions depending on origin and value. Officials said any mis-declaration of such consignments increases the likelihood of diversion into the domestic market.
According to ED, between 2015 and 2017, the alleged fraud was executed through a complex logistics chain in which imports were routed from Indonesia by the accused Mumbai-based firm Titan Sea & Air Services Pvt Ltd. The consignment was stored at the Free Trade Warehousing Zone (FTWZ) and the Special Economic Zone (SEZ) in Panvel, Maharashtra. However, the invoices for the “export” of these goods were generated by UAE-based Daqiq General Trading LLC and four other identified companies in favour of Titan Sea & Air Services Pvt Ltd.
The ED found that the Indonesian exporters received their payments from these UAE-based firms, but no corresponding payment was made from India to the suspected shell firms in the UAE for the consignment, indicating a circular trading mechanism. Further investigation revealed that the export documentation was fabricated through shell and associated firms,showing the consignment as “exported” only on paper. Officials said forged shipping records, manipulated customs seals and falsified export proofs were used to project that the goods were shipped to neighbouring countries, whereas in reality the consignments were diverted into the domestic tariff area (DTA).
The agency is now tracing the money trail linked to UAE firms, domestic buyers and public servants suspected of facilitating the fraudulent clearances. The role of Customs and SEZ officials posted at the Arshiya Free Trade Warehousing Zone in Panvel is also under scrutiny.
