While one factory in Jodhpur appeared to have clandestinely removed goods involving Central Excise duty to the tune of Rs 8 crore, a Delhi company allegedly headed by Joshi appeared to have cleared goods without payment of duty to Mumbai, involving central excise duty of about Rs 4 crore, it said.

“Duty evasion to the tune of Rs 12 crore appears to have been committed by these units within a short period of three to four months. It gives a fair idea about the extent of evasion involved,” the agency said.

Under the Central Excise Tariff Act (1985), gutkha is an excisable commodity subject to an aggregate duty at 66 per cent on 50 per cent of the MRP. According to the DGCEI, Joshi “has tried to distance himself legally from the affairs of these units... by making other persons their directors”.

The remand application also said that Joshi, in a statement recorded under section 14 of the Central Excise Act but retracted later, confirmed that he had worked as Director in all three franchisee units when they were established.

In court, defence lawyer Vijay Thorat argued that since Joshi was not a manufacturer of ‘Goa Gutkha’, he could not be booked for excise evasion in this case. Thorat also said since Joshi was willing to cooperate with the DGCEI and appear for questioning, there was no need for DGCEI to seek his custody.