CBI Court Sentences Ex-Customs Inspector and Trader to 5 Years in ₹32 Crore Excise Fraud Case

A CBI court in Visakhapatnam sentenced a former Customs Inspector, a private trader, and their company to 5 years in prison for executing a ₹32.28 crore excise duty fraud.

New Delhi: On September 16, 2025, the CBI court in Visakhapatnam, while delivering its verdict in a major fraud case, sentenced Kalaka Ramdas, a former inspector of Central Excise and Customs, and Polaki Janakiram, a private individual, to 5 years in prison and a fine of Rs.1,01,000/-, Rs.2,51,000/-, and Rs.2,01,000/-, respectively [total fine of Rs.5,53,000/-] in a Rs.32.28 crore fraud case.

Furthermore, a private company, M/s Sri Balaji General Trading Company, involved in the fraud, was also convicted.

What was the entire case?

The CBI registered this case on August 30, 2005. The investigation revealed that Polaki Janakiram, as part of a conspiracy, created a fake company (SBGTC) using fake identities and documents. To run this company, he introduced himself as Palla Keshava Rao, a person who did not actually exist.

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Janakiram obtained a trading license, Import-Export Code, and warehousing station permission from the Visakhapatnam Special Economic Zone (VSEZ) under the Customs Act using forged signatures and false documents.

Complicity of a Government Official

Janakiram was assisted in this fraud by then-Inspector Kalaka Ramdas. Together, they flouted regulations and evaded a total of ₹32.28 crore in excise and customs duties. Janakiram imported goods duty-free and then sold them to three Mumbai-based companies under the guise of "deemed exports"—a complete violation of the EXIM policy.

Chargesheet and Trial

Following an investigation, the CBI filed a chargesheet on August 29, 2008. During the trial, ample evidence was presented, establishing that the two accused and their company defrauded the government of crores of rupees through fraud and forgery.

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Court Verdict and Sentence

The CBI court, in its verdict, found Kalka Ramdas, Polaki Janakiram, and their company guilty. All three were sentenced to 5 years in prison and fined:

₹1,01,000 for Kalka Ramdas

₹2,51,000 for Polaki Janakiram

₹2,01,000 for the company

Total fine: ₹553,000

Following the verdict, both convicts were sent to Visakhapatnam Central Jail.