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Excise department probes possible siphoning of liquor from duty free shops

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Express news service

Posted: Jan 07, 2008 at 0000 hrs IST

Mumbai, January 6 In a major action, state excise Department officials seized around 270 bottles of liquor from a mother and son duo in the last week of December.

State Excise Inspector Prakash Aware, who led the operation, said they had arrested Rachana Punjabi and her son Lalit, who were later released on bail. Officials from the state excise department’s flying squad said they suspected that the liquor was being procured from conduits who in turn had siphoned it from duty free shops at international airports.

In 2005, the state excise officials had nabbed Swapnil Sunil Kadam, the son of an assistant police inspector (API), who had stocked at his Dharavi residence around 700 bottles of premium liquor brand, all allegedly siphoned from the duty free shop at the international airport. Sources said they were investigating whether a similar modus operandi was involved in this case as well.

The duo, arrested from their Khar residence, had in their possession premium brands like Black Label, Red Label and Chivas Regal, in addition to a number of beer cans.

Officials said that the high rate of excise duty in the open market, added to the huge margin of profit in the sale of liquor procured from the duty free shop, encouraged such rackets. A bottle of a premium brand like Black Label, which costs around Rs 1,600 per bottle in the duty free shop, can sell at an estimated Rs 3,000 in retail liquor outlets.

There were chances that some passengers, who were allowed to purchase two bottles per person from the duty free shops, were also involved in the racket. State excise officials are investigating the incident and said there were chances of more arrests being made.

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