Monday, January 2 2006 17:51 Hrs (IST) - World Time -

New Delhi: The Directorate of Revenue Intelligence (DRI) yesterday (Jan 01, 2006) sealed over a dozen godowns in Delhi in connection with the multi-crore newsprint import scam.

The godowns were sealed after interrogation of five paper importers arrested in connection with the scam, the DRI sources said.

DRI will be questioning the owners of some small time newspapers whose RNI certificates were being used to evade the tax, the sources said

The scam, involving some politicians, has been unearthed by the DRI, which has arrested five businessmen and seized at least 300 tonnes of paper imported from various countries through tax evasion in this connection.

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

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.