KATHMANDU: The Revenue Investigation Office in Butwal has filed a case against four individuals, including a trader from Nawalparasi, for selling sugar disguised as rice.

The case was lodged at the Butwal bench of the Tulsipur High Court after it was discovered that Navajyoti Traders, located in Ward No. 8 of Ramgram Municipality, Nawalparasi, had been labeling sugar worth Rs 34.7 million as rice and distributing it to various locations.

The illegal activity came to light when a truck carrying sugar valued at over Rs 1.1 million, billed as rice, was intercepted en route to Pushpa Sharma, operator of Aagawan Stores and Order Suppliers in Surkhet.

Following the truck’s seizure, further investigation revealed that such sugar had been dispatched thrice before using rice invoices, according to Bibek Ghimire, Chief Investigating Officer at the Butwal Revenue Investigation Office.

During the investigation, it was found that the company was not registered for Value Added Tax (VAT) and had repeatedly used fake rice invoices to smuggle Indian sugar without customs declaration.

As a result, Navajyoti Traders’ operator Saurabh Yadav has been charged with causing a loss of Rs 34.76 million.

The office has demanded a 100 percent fine, bringing the total penalty sought, including imprisonment, to Rs 69.5 million.