Interviews
Kamal Nath orders CBI investigation into pulse exports matter
23 Mar '07
4 min read
• In another meeting of the COS held on 4th July 2006, it was decided that export of pulses, contracted/LC opened between 22 and 27 June 2006, will not be permitted by DGFT in view of the CCP decision on 22.6.2006 to ban exports of pulses and an order to this effect will be issued. Consequently, DGFT Notification dated 4th July 2006 was issued.
• On 24.2.2007, Association of Pulses Manufacturers-Exporters of India, Indore represented before the Commerce and Industry Minister that some exporters have been exporting pulses even after the ban and only the small exporters have suffered from this ban.
• Commerce & Industry Minister ordered immediate inquiry and report. The complaints were sent to the DGFT and Member (Customs) for the inquiry.
• The DGFT gave his detailed report on 12.3.2007 including finding of a preliminary investigation by the Department of Revenue Intelligence (DRI).
The DRI has suspected foul play by three exporters, namely, M/s Jetking International, M/s Kohinoor Foods and M/s KRBL Ltd, who are three main exporters to export after the ban. The DRI found two “abnormalities” in the documents (a prima-facie manipulation of the expiry date and the abnormally similar price ($ 600 per ton) shown for different kind of pulses).
They are conducting a detailed scrutiny of the documents of other exporters. The DGFT suggested a detailed investigation/probe by CBI. Consequent to the report of DGFT along with the DRI preliminary inquiry report, Commerce & Industry Minister ordered CBI investigation. The CBI has been informed vide communication dated 15th March 2007.
The Foreign Trade Policy provides for transitional arrangements as per para 1.5 of the Foreign Trade Policy (2004-09) which reads as “In case an export or import that is permitted freely under this Policy is subsequently subjected to any restriction or regulation, such export or import will ordinarily be permitted notwithstanding such restriction or regulation, unless otherwise stipulated, provided that the shipment of the export or import is made within the original validity of an irrevocable letter of credit established before the date of imposition of such restriction”.
Thus the transitional arrangements flow from the Foreign Trade Policy, and apply to all changes, unless specifically excluded. In the later orders of the DGFT, this arrangement has been specifically excluded in order to achieve tighter control on domestic supplies. It can thus be seen from the above that the allegations made are not correct.
• On 24.2.2007, Association of Pulses Manufacturers-Exporters of India, Indore represented before the Commerce and Industry Minister that some exporters have been exporting pulses even after the ban and only the small exporters have suffered from this ban.
• Commerce & Industry Minister ordered immediate inquiry and report. The complaints were sent to the DGFT and Member (Customs) for the inquiry.
• The DGFT gave his detailed report on 12.3.2007 including finding of a preliminary investigation by the Department of Revenue Intelligence (DRI).
The DRI has suspected foul play by three exporters, namely, M/s Jetking International, M/s Kohinoor Foods and M/s KRBL Ltd, who are three main exporters to export after the ban. The DRI found two “abnormalities” in the documents (a prima-facie manipulation of the expiry date and the abnormally similar price ($ 600 per ton) shown for different kind of pulses).
They are conducting a detailed scrutiny of the documents of other exporters. The DGFT suggested a detailed investigation/probe by CBI. Consequent to the report of DGFT along with the DRI preliminary inquiry report, Commerce & Industry Minister ordered CBI investigation. The CBI has been informed vide communication dated 15th March 2007.
The Foreign Trade Policy provides for transitional arrangements as per para 1.5 of the Foreign Trade Policy (2004-09) which reads as “In case an export or import that is permitted freely under this Policy is subsequently subjected to any restriction or regulation, such export or import will ordinarily be permitted notwithstanding such restriction or regulation, unless otherwise stipulated, provided that the shipment of the export or import is made within the original validity of an irrevocable letter of credit established before the date of imposition of such restriction”.
Thus the transitional arrangements flow from the Foreign Trade Policy, and apply to all changes, unless specifically excluded. In the later orders of the DGFT, this arrangement has been specifically excluded in order to achieve tighter control on domestic supplies. It can thus be seen from the above that the allegations made are not correct.
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