Date:05/07/2008 URL: http://www.thehindu.com/2008/07/05/stories/2008070561190300.htm

New Delhi

Mega duty evasion accused to face trial in 13 cases

Staff Reporter

He will be produced in a Mumbai court today

Rs.54-crore duty evasion cases in Delhi and Mumbai
Rastogi, his brothers and cousin cheated Indian government

NEW DELHI: The Central Bureau of Investigation has secured the extradition of Narendra Rastogi from the United States for his trial in 13 cases of Customs duty evasion of Rs.54 crore registered in Delhi and Mumbai. He will be produced in a Mumbai court on Saturday.

Bank fraud

Narendra was arrested by the Federal Bureau of Investigation in May 2002 in connection with a bank fraud in the U.S. in which he cheated several banks of about $ 70 crore. Wanted by the CBI in customs duty evasion cases, Narendra pleaded guilty to all the charges there in December 2003 and was sentenced to seven years’ imprisonment.

This March, the U.S. Department of Justice informed the CBI that Narendra’s sentence would be completed in June, following which the CBI intensified efforts for his extradition.

According to the CBI, Narendra, his brothers Ravindra, Virendra and Subhash Chand and cousin Rakesh Rastogi had cheated the Indian government during the late 1980s and mid-1990s through Customs duty evasion.

Investigations revealed that during 1989-1992, the Rastogis obtained 40 licences for importing zinc, zinc oxide, copper sheets, copper foils and brass scrap.

Customs officials

They conspired with some Customs officials posted at the Indo-Nepal border check posts to falsely show fulfilment of export obligations of about Rs.75.74 crore through forged bills of entries and other papers, causing a loss of Rs.13 crore to the Indian government, said a CBI official.

Two of Narendra’s brothers -- Ravindra and Subhash Chand -- have been arrested. According to the CBI, a request for Virendra’s extradition from the United Kingdom is pending in a court there.

He has been sentenced to nine-and-half years’ imprisonment by a United Kingdom court in June in a fraud case.

Cash advances

Virendra and his brothers created “trades” with over 300 fake customers supposedly based in the U.S., Hong Kong, Singapore, Dubai, India, France and Italy to use them as collateral for cash advances from various banks, the CBI said.