Two suspects who were arrested and remanded over their failure to pay customs duty for beedi leaves which were illegally imported into the country were further remanded till March 5.
The remand order was issued when the suspects were produced before Colombo Additional Magistrate Lochana Gamage today (Feb 25).
Investigations have revealed that N. Fazal Ahamed the chief suspect in the racket is a key figure involved in smuggling pepper from Vietnam to Sri Lanka.
The suspects have been arrested over charges of attempting to clear their consignments while committing a tax fraud that had resulted in a loss of Rs 40 million to the government.
Charges have been levelled against the suspect for violating the Customs Ordinance Act.
According to customs officials, the suspects had attempted to export the imported consignment of beedi leaves to Italy.
The chief suspect in the racket was previously involved in smuggling pepper and arecanut to Sri Lanka and exporting it to another country, the Customs Department claims.
The fraud is believed to have been committed by submitted false declaration forms.
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