Directorate of Revenue Intelligence seizes ₹30 crore worth of salt smuggled from Pakistan

Internal Security & Customs Enforcement · 15 October 2026 · Based on The Hindu (original report)

Worth reading — 1 past UPSC question on this theme (Prelims GS-1 2025); also both a Prelims fact and a Mains debate.

2-minute summary

The Directorate of Revenue Intelligence (DRI) has seized 295 containers carrying 7,311 metric tonnes of Pakistan-origin salt valued at approximately ₹30 crore, in violation of India's total ban on imports from Pakistan enacted after the April 2025 Pahalgam terror attack. Operating between September 26 and October 11, 2026, the DRI uncovered a transnational smuggling ring routing consignments through Colombo Port, Sri Lanka, utilizing fake certificates of origin and invoices issued by UAE-based entities. The shipments entered India via Mundra and Kandla ports since March 2026, handled by nine importing firms. Four individuals—including proprietors, a Customs broker's G-card holder, and a Dubai-based supplier—have been arrested under the Customs Act, 1962, marking a major crackdown on trade circumvention.

Why it's in the news

The DRI intercepted a major transnational smuggling operation routing banned Pakistan-origin goods through third-party nations (Sri Lanka and UAE) to bypass India's total trade embargo imposed following the April 2025 Pahalgam terror attack.

Facts to remember

The Directorate of Revenue Intelligence (DRI) functions under the Department of Revenue, Ministry of Finance.
The Indian government banned all direct or indirect imports from Pakistan following the Pahalgam terror attack in April 2025.
The seized consignment comprised 295 containers carrying 7,311 metric tonnes of Pakistan-origin salt valued at roughly ₹30 crore.
The smuggled salt was routed through Colombo Port, Sri Lanka, using fabricated Certificates of Origin issued by UAE-based entities.
The illegal imports entered India through Mundra and Kandla ports in Gujarat since March 2026.

Background and context

The Directorate of Revenue Intelligence (DRI), established in 1957, is India's apex intelligence agency tasked with anti-smuggling operations and combating commercial fraud. Operating under the Central Board of Indirect Taxes and Customs (CBIC) in the Ministry of Finance, the DRI enforces the Customs Act, 1962. Geopolitical tensions, particularly security incidents such as terrorist attacks, have historically prompted India to recalibrate its economic and trade engagement with Pakistan. Following the April 2025 Pahalgam terror attack, India invoked national security and public policy provisions under trade laws to enact a total ban on the direct or indirect import, transit, or export of goods originating from Pakistan. Smugglers frequently attempt to circumvent such prohibitions through 'paper trade' or transshipment routes involving third countries—such as the UAE and Sri Lanka—by falsifying Bills of Lading and Certificates of Origin to obscure the true provenance of cargo.

Constitutional provisions

Article 246 — Empowers Parliament to legislate on Union List subjects, including customs, duties, and foreign trade (Entry 41 and Entry 83 of List I).

Previous UPSC questions on this theme

Prelims GS-1 2025 — With reference to the Government of India, consider the following information : Organization — Some of its functions — It works under I. Directorate of Enforcement — Enforcement of the Fugitive Economic Offenders Act, 2018 — Internal Security Division–I, Ministry of Home Affairs II. Directorate of Revenue Intelligence — Enforces the Provisions of the Customs Act, 1962 — Department of Revenue, Ministry of Finance III. Directorate General of Systems and Data Management — Carrying out big data analytics to assist tax officers for better policy and nabbing tax evaders — Department of Revenue, Ministry of Finance In how many of the above rows is the information correctly matched? (a) Only one (b) Only two (c) All the three (d) None

Mains practice: Examine the challenges posed by third-country transshipment routes and fabricated certificates of origin in enforcing trade sanctions. Suggest regulatory measures to fortify India's maritime trade security.

Introduction:

Trade sanctions and import embargoes imposed on national security grounds are frequently undermined by sophisticated transnational smuggling networks that exploit third-country transshipment channels, as highlighted by the recent DRI seizure of ₹30 crore worth of Pakistan-origin salt routed through Sri Lanka and the UAE.

Dimensions of the Challenge:

• Regulatory Evasion: Importers bypass prohibitions by utilizing secondary hubs (such as Colombo Port) to alter shipping documentation, obscuring the original provenance of goods in violation of trade bans.

• Documentation Fraud: Widespread fabrication of Certificates of Origin and misuse of fake invoices issued by entities in lax regulatory jurisdictions compromise customs clearance integrity.

• Transnational Nexus: Collusion among multi-country actors—involving Pakistani suppliers, UAE intermediaries, Sri Lankan logistics, and Indian brokers—creates complex investigative webs for domestic law enforcement.

• Economic and Security Risks: Influx of unverified goods not only breaches national security mandates but results in revenue loss and distorts domestic markets, as governed by the Customs Act, 1962.

Way Forward:

• Enhanced Data Integration: Implement advanced cargo information exchange pacts with littoral neighbours and major transshipment hubs to verify Bills of Lading digitally.

• Artificial Intelligence in Customs: Deploy big-data analytics under the Central Board of Indirect Taxes and Customs (CBIC) to flag anomalies in import declarations and weight-to-value ratios.

• Strict Penal Deterrence: Enforce stringent criminal prosecution under the Customs Act against complicit brokers, shell entities, and domestic proprietors.

Conclusion:

Securing India's maritime borders against economic subterfuge requires tightening supply-chain visibility, aligning with global customs intelligence frameworks, and upholding national security without impeding legitimate international commerce.

Prelims practice questions

Q1. Consider the following statements regarding trade enforcement and regulatory bodies in India: 1. The Directorate of Revenue Intelligence (DRI) is a statutory body established directly under the provisions of the Competition Act, 2002. 2. Under the total trade ban instituted after the April 2025 Pahalgam terror attack, all direct and indirect imports originating from Pakistan are prohibited. 3. Certificates of Origin for international shipments are exclusively issued and authenticated by the Reserve Bank of India. How many of the above statements are correct?

Only one
Only two
All three
None

Answer: D. Statement 1 is incorrect because the DRI is an apex intelligence agency functioning under the Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, Ministry of Finance, not the Competition Act. Statement 2 is incorrect because the text specifies that the import ban followed the Pahalgam terror attack in April 2025, but statement 3 is incorrect because Certificates of Origin are issued by designated trade chambers or competent export authorities in the exporting country, not the RBI. Thus, none of the three statements are correct.

Q2. Which of the following best describes the primary mandate of the Directorate of Revenue Intelligence (DRI)?

Enforcing the provisions of the Customs Act, 1962 and spearheading anti-smuggling intelligence operations
Conducting environmental impact assessments for all major coastal infrastructure projects and ports
Managing bilateral trade negotiations and finalizing free trade agreements with regional trading blocs
Formulating domestic monetary policy and regulating retail bank interest rates across commercial lenders

Answer: A. The DRI is India's premier intelligence agency for anti-smuggling and anti-commercial fraud, functioning under the Department of Revenue to enforce the Customs Act, 1962. The other options describe the functions of RBI, Ministry of Environment, and Ministry of Commerce respectively.

Q3. Consider the following statements: Statement-I: Transnational smuggling syndicates frequently route prohibited goods through third-party ports using fabricated Certificates of Origin to evade national trade embargoes. Statement-II: Under India's current legal framework, Customs authorities possess no statutory authority to seize the financial sale proceeds of smuggled goods from bank accounts. Which one of the following is correct in respect of the above statements?

Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
Both Statement-I and Statement-II are correct but Statement-II does not explain Statement-I
Statement-I is correct but Statement-II is incorrect
Statement-I is incorrect but Statement-II is incorrect

Answer: C. Statement-I is correct as evidenced by smugglers routing Pakistan-origin salt through Colombo Port with fake certificates. Statement-II is incorrect because investigative agencies like the DRI do have statutory powers under customs and anti-smuggling laws to seize sale proceeds and bank accounts linked to illegal imports.

Revision flashcards

Which nodal ministry and department does the Directorate of Revenue Intelligence (DRI) operate under? Ministry of Finance, Department of Revenue (under the Central Board of Indirect Taxes and Customs).
What principal legislation empowers the Directorate of Revenue Intelligence to combat smuggling in India? The Customs Act, 1962.
What key trade restriction was instituted by the Indian government following the Pahalgam terror attack in April 2025? A total ban on direct or indirect import, transit, or export of all goods originating from Pakistan.
By what modus operandi did smugglers bypass the direct import ban from Pakistan in October 2026? Routing consignments through Colombo Port, Sri Lanka, using fabricated Certificates of Origin and UAE-issued invoices.
Why do transnational smuggling networks utilize third-party transshipment hubs for embargoed goods? To obscure the true country of origin and deceive customs authorities through falsified Bills of Lading and shell company invoicing.