DRI arrests Nagpur trader Jayesh 'Tikku' Panchmatia in alleged Rs thousands-crore areca nut smuggling racket

Nagpur: Tikku alias Jayesh Panchmatia, a Nagpur trader known for his business in groundnut and later areca nut, has been arrested by the Directorate of Revenue Intelligence (DRI) in connection with an alleged international areca nut smuggling network. His name being linked to the network has caused a stir in the city's trading circles. The alleged racket involved bringing in areca nut from Indonesia, passing it off as Bangladeshi agricultural produce and selling it in India, and is said to be worth thousands of crores of rupees. Panchmatia, 55, lives in Crorepati Gali, Civil Lines. Following his arrest, talk has intensified in Nagpur's areca nut market. According to sources, some traders said to be linked to the network are missing from the city.

Why the areca nut was labelled Bangladeshi: The key question in the case is why Indonesian areca nut had to be shown as Bangladeshi. According to sources, imports of Indonesian areca nut attract customs duty of about 105 per cent in India, while imports from Bangladesh get a concession. The investigating agency suspects that this arrangement was misused and that documents on the origin and import of the areca nut were manipulated. It is alleged that areca nut was first sent from Indonesia to Bangladesh, where forged documents were allegedly prepared to show it as Bangladeshi agricultural produce. Consignments were then sent via Kolkata to various cities across the country. The network was working to avoid customs duty and to sell areca nut in the Indian market.

Link from a Bangladeshi firm to Nagpur: According to sources, a Bangladeshi firm called Balaji International is said to be an important link in the trade. It is alleged that Indonesian areca nut was ordered through this firm and sent to the Indian market allegedly as Bangladeshi goods. Along with Tikku alias Jayesh, some of the city's areca nut traders, including Anis, Tinku, Anna and Sunny, bought and sold areca nut linked to this network. However, the actual role of the traders concerned and the real nature of their transactions will become clear only after investigation. Traders involved in smuggling have caused difficulties for those dealing in areca nut legitimately.

Action from Kolkata to Indore, nine traders arrested: The investigation began after the DRI got wind of the network, which has allegedly been running for several years. According to sources, the probe brought up the names of traders in different cities. The scope of the action was then widened, and the DRI's Indore unit summoned Tikku for questioning. After questioning in Indore, he was handed over to the DRI in Kolkata, which arrested him after questioning. Sources claim nine traders have been arrested in the case so far. A trader named Khushi Chaudhary was released on bail after two months. The alleged kingpin of the network is said to be Dinesh Agrawal of Kolkata, who is still out of the agency's reach. After Tikku's arrest, the agency is now looking at other traders linked to the network and their financial transactions. Amid growing unease in Nagpur's areca nut market, the biggest question is how deep the roots of the alleged network go and whose names emerge as the investigation proceeds.