DRI Uncovers ₹30 Crore Luxury Furniture Import Scam; Three Arrested in Massive Customs Evasion Case

In a major crackdown on customs fraud, the Directorate of Revenue Intelligence (DRI) has unearthed a multi-crore racket involving the import of luxury furniture through gross undervaluation and fraudulent documentation. The operation, spread across multiple locations and involving shell companies and dummy importers, is estimated to have caused a customs duty loss of approximately ₹30 crore.

Based on specific intelligence, DRI officials launched coordinated searches at various premises including warehouses, freight forwarders’ offices, customs brokers, and business locations linked to the syndicate. Investigations revealed a sophisticated scheme designed to import high-end branded furniture—primarily sourced from renowned Italian and European suppliers—while declaring them as unbranded items at drastically reduced values.

According to DRI, the modus operandi involved routing invoices through shell entities based in tax havens like Dubai and Singapore. Dummy Indian importers were used to falsely declare the furniture as unbranded and underpriced to Customs. Meanwhile, the goods were shipped directly to the end customers, while on paper they were shown as transferred to a local intermediary, masking the identity of the real beneficiary.

Preliminary findings show that the declared import values were understated by 70% to 90%, leading to massive duty evasion. The key conspirators—the beneficial owner, dummy importer, and intermediary—have all been arrested under the Customs Act, 1962, following raids conducted on July 21 and 22.

This is not the first such case this year. In May 2025, the DRI had unearthed a similar fraud involving luxury furniture imports, where another front company was used to evade over ₹20 crore in customs duties. That case also led to the arrest of three individuals.

The DRI has intensified its investigation into the broader network of shell companies, dummy Importer Exporter Code (IEC) holders, and financial trails involved in these illegal operations. Officials say such commercial frauds not only result in substantial revenue losses to the exchequer but also severely distort market competition, putting honest importers and domestic businesses at a disadvantage.

The agency has reiterated its commitment to cracking down on such economic offenses and ensuring a level playing field in international trade.