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With the police halting smuggling racket at Mumbai harbour, they no longer have access to cheap diesel

Fishermen thriving on smuggled diesel are having a tough time after the police laid siege to the Mumbai harbour, blocking the estimated Rs 1,000 crore clandestine business. Many fishermen, who were buying illegal diesel for as little as Rs 18 a litre, now have to buy it at regular price, which can be up to Rs 34.

Petrol duty: A policeman keeps a watch on the coastal area. File pic

A large quantity of smuggled diesel was sold to fishermen and  petrol pumps across the city. Investigations indicate that transactions of more than 500 tonnes took place almost every alternate day. The volume of the business was around Rs 180 crore for a two-month-season.

The operation has left dozens of tugs and other tankers used for smuggling redundant. Many of them have been lying idle in the harbour for the past few weeks. Scores of informers were tapped to collect information on the movement of the vessels and syndicate members.

 "A large number of fishermen using smuggled diesel have been affected. Their operations have come to a halt after recent raids," said Rajan Bhogale, senior inspector of Sewri police station.

Even as the police were struggling with anti-terror measures, ACP R K Padmanabhan, (South Region) secretly formed a special squad of five officers to stop diesel smuggling from ships anchored in the high seas off Mumbai.
Officials from the Directorate of Revenue Intelligence were roped in to stop smuggling activities at the harbour.

"I sailed out for surveillance during night operations," recalled Padmanabhan.

MiD DAY accompanied  a few police officers to the landing sites twice to check whether the smuggling of diesel was still on. The raids were not only successful, but also got at least five corrupt officers transferred to no-sensitive postings.

Rs 1,000 cr The estimated worth of the diesel smuggling business

How it works

Diesel from merchant vessels is smuggled with the approval of the ship's captain and others. An agent, who works on a commission basis, usually cinches the deal. All payments are made in USD, which helps the flourishing hawala trade in the city. Most ship owners usually sanction a specified quantity of diesel for running the engine and other auxiliary machinery while sailing. Fudged marine logbooks show a high consumption pattern. Generally, air conditioners and other  machines are switched off to save on fuel.

The Route Sea-going tugs used for smuggling diesel sail out of the harbour under the cover of darkness and head for 'Bravo' anchorage, about 20 nautical miles off Mumbai harbour. The consignment is offloaded in less than an hour. The diesel-laden tugs and similar vessels head for jetties in Navi Mumbai. The consignment is transferred to motor tankers with fudged documents. The vehicles fan out to dubious petrol pumps across the state.

Operation Sagar Kavach Following the terrorist attacks on November 26, 2008, the Indian Navy, Coast Guard, Customs and Marine Police conducted a massive search operation and drill across the coastal region of western India from the Rann of Kutch to the southern coast of Maharashtra. This was the largest coastal operation of its time. In November 2009, a similar mock exercise was conducted on the 1,600-km Gujarat coastline to check the preparedness of the marine forces. The marine force is now increasing its strength by adding 900 commandos. A special helipad is also being constructed at Bhuj.

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