An illegal pan masala manufacturing unit operating under the garb of a poultry farm in Kolar was busted on Friday by Central Excise Department. The raid on the factory, which is yet to be concluded, is being handled by a special team of Directorate General of Central Excise Intelligence (DGCEI), flown in from New Delhi for the purpose. The raid is said to have unearthed Central Excise Duty evasion of an estimated ₹400 crore.
Sources in DGCEI said that the raid was taken up following a specific tip-off on the role of a realtor from Guntur, Andhra Pradesh, in illegal pan masala and gutka manufacturing business. A statement by DGCEI said that raids were on at the residence of the realtor too. However, he is still at large and a manhunt has been launched to nab him.
Sources said that the factory in Kolar operated in a large shed in Koli Farm, a poultry farm, for over two years now. The raid led to the discovery of 21 pan masala pouch packing machines installed and running in the factory. A statement from the DGCEI said that they have recovered pan masala labels of brands such as Khaleja, Rebel, Remo, Kabali, Dubai, MC, HAI, AAA1000 among others. Officials have seized unaccounted cash of ₹83 lakh from the premises. Manager of the factory premises, responsible for the operations and logistics, has been arrested and remanded to judicial custody for 15 days.
A senior official from DGCEI said that this was the first time that a clandestine pan masala manufacturing unit was busted in Kolar. “Earlier such units were busted in Hyderabad, Bengaluru and border districts of Karnataka and Andhra Pradesh,” the official said.
