An illegal pan masala manufacturing unit operating under the garb of a poultry farm in Kolar was busted on Friday by the Central Excise Department.
The search of the factory, which is yet to be concluded, is being handled by a special team of the Directorate General of Central Excise Intelligence (DGCEI) that has flown in from New Delhi.
The search is said to have unearthed excise duty evasion of an estimated ₹400 crore.
Sources in DGCEI said that the search 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 the DGCEI said that the residence of the realtor too was searched. However, he is at large.
Sources said that the factory in Kolar is located in a large shed in Koli Farm, a poultry farm, and had been in operation for over two years. The search team discovered 21 pan masala pouch packing machines in the premises.
A statement from the DGCEI said that they have recovered pan masala labels of Khaleja, Rebel, Remo, Kabali, Dubai, MC, HAI and AAA1000.
Sleuths seized ₹83 lakh in unaccounted cash from the premises. The manager of the factory, who is responsible for the operations and logistics, has been arrested and remanded in judicial custody for 15 days.
A senior official from the DGCEI said that this is the first time that a clandestine pan masala manufacturing unit has been busted in Kolar.
“Earlier, such units had been found in Hyderabad, Bengaluru and in some border districts of Karnataka and Andhra Pradesh,” the official said.
