Jaipur police on Monday arrested five men accused of siphoning export incentive scrips by illegally accessing government portals, in a racket estimated to have caused nearly ₹400 crore in losses to the exchequer.
The accused — Sultan Khan, Nand Kishor, Nirmal Soni, Ashok Kumar Bhandari, and Pramod Khatri, all residents of Jodhpur — reportedly created fake Digital Signature Certificates (DSCs) using forged Aadhaar and PAN details to gain unauthorized access to the DGFT-ICEGATE system, which exporters use to manage government-issued incentives linked to imports and exports.
“They procured DSCs using forged identity documents and accessed genuine exporters’ accounts to transfer duty credit scrips to fake importer-exporter code (IEC) accounts controlled by them,” said a senior police official.
The accused allegedly diverted scrips under export-linked incentive schemes such as RODTEP and ROSCTL, either encashing them or selling them, and used multiple ‘mule accounts’ to conceal the money trail. These legitimate accounts were used to receive, transfer, or launder illegally obtained funds.
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Investigations suggest the racket involved sophisticated digital forgery, fake identities, and misuse of banking systems. According to cybercrime expert and former IPS officer Prof. Triveni Singh, “Such rackets exploit social engineering and digital identity vulnerabilities. Weak online security can lead to large-scale losses in government schemes and harm legitimate beneficiaries.”
Police said the accused had been active for six months, and multiple complaints and preliminary reports were already on record. Authorities are now tracing other fake account holders and potential financial collaborators connected to the network.
The police emphasized that securing government export incentive schemes is a priority. They are analyzing the accused’s bank accounts and digital transactions to map the full flow of funds and identify all involved parties.
The investigation reveals that the network spanned Jodhpur, Jaipur, and other regions, and involved large-scale illegal sale and encashment of government scrips. Authorities also warned that such cases highlight the urgent need for stronger cybersecurity measures and digital verification protocols on government portals.
This case serves as a major warning on cybercrime and exploitation of government systems, and ongoing investigations aim to determine the total number of exporters and schemes affected.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
