DGCEI busts illegal gutkha unit, detects Rs 400 cr tax evasion

The intelligence arm of the Finance Ministry has busted an illegal pan masala and gutkha manufacturing unit in Karnataka's Kolar area and detected central excise duty evasion to the tune of Rs 400 crore.

A team of officers of Directorate General of Central Excise Intelligence (DGCEI) searched the unregistered manufacturing unit and found 21 pouch packing machines in running condition, sources today said.

The factory operated from a poultry farm on Pavan college road, Kolar, and manufactured Khaleja, Rebel, Remo, Kabali, Dubai, MC, HAI and AAA1000 brands of pan masala.

The machines, raw material and related goods have been seized. Unaccounted cash amounting to Rs 83 lakh was seized from various premises in Kolar in Karnataka and Guntur in Andhra Pradesh, the sources said. The unit evaded central excise duty to the tune of Rs 400 crore, they said.

The authorities suspect a Guntur-based real estate baron is linked to the illegal manufacturing unit, the sources said.