Sunday, January 1 2006 10:14 Hrs (IST) - World Time -

New Delhi: A multi-crore newsprint import scam, involving some politicians, has been unearthed by the Directorate of Revenue Intelligence (DRI) which has arrested five businessmen in this connection.

At least 300 tonnes of paper imported from various countries through tax evasion has been seized by the DRI sleuths in this connection, sources in the agency told sources here today.

Investigations have revealed that some paper businessmen were using RNI certificates of some small time newspapers to import the consignments, they said.

They engaged in such practice as import of paper for use of newspaper carries very low duty of five per cent while for other uses the tax is upto 40 per cent.

So far five such importers have been arrested in Delhi, the sources said without divulging their names and other details lest it should affect the investigations.

The probe has indicated to involvement of at least four MPs or MLAs of Delhi, Ghaziabad and some other places who are running newspapers, they said.

They are being called for questioning in this regard. The sources said the operation was still continuing across the country and several other people were expected to be nabbed.

The seized paper was brought into the country in 14 containers, 12 of these have been seized and two have been detained.