The companies, all from Mumbai, have given addresses like shops and PCOs, some of them in slums. In some cases the addresses are common.

The DRI had been watching these companies for some time after it received specific intelligence. It has now found evidence that forged shipping bills and bank realisation certificates were used to obtain the DEPBs from the DGFT. The DEPB allows duty exemptions in cases of imports against exports. The fraudulent DEPBs identified so far are 70, involving a total duty evasion of Rs 10 cr, and the imports made under the same are of Rs 2.5 cr. Most of these were issued in the last six months. Further, the post-DEPB verification of Customs (before imports are allowed) is also forged, informed sources said.

The bogus exporting companies identified sofar are: Sipla Exports, Shirji Textiles, Vaibhav Sales, Surabhi Garments, Kirti Kumar, Sonu Impex, Vaishali Garments, Sundara Impex, Gautam Enterprises, Jinture Impex, Unique Exports, Pearl Exports and Priya Exports, Hardik Exports and TVS Exports. The DEPBs were further sold to unsuspecting parties through brokers, also identified. The premium on these DEPBs is also very high due to the exemption on special additional duty (first eight per cent, then reduced to four per cent) imposed by the government in the budget this year.

Sources said the frauds are possible because the DGFT is bound to issue DEPBs within five days of the application. The amount of paper work involved does not leave much time for the verification of details. In fact, in the last five months, the Joint DGFT, Mumbai has issued over 8,000 import-export (IE) codes (the initial code that an importer/exporter needs to start the business). The figure itself is unrealistic, sources say, but the system does not allow for refusal even if thenumbers seem suspicious.