The government has imposed a stricter process of physical verification of all Letters of Credit to ensure full compliance of its May 13 order that restricts wheat exports. The latest order from the Directorate General of Foreign Trade (DGFT) directs the Regional Authorities to "physically verify" all documents regarding export of wheat before being issued Registration Certificates.
In the May 13 order, the Ministry of Commerce and Trade had "prohibited" export of wheat but permitted exports in cases when the Letters of Credit were issued "on or prior to" that date. It was feared that unscrupulous elements would forge Letters of Credit to show validity of the Letters of Credit and continue to export wheat.
"In cases where the LC date is on or prior to 13th May 2022, but the SWIFT message/message exchange date between the Indian and Foreign bank is after 13th May 2022, Regional Authorities may conduct full investigation and if these are found to be ante-dated, immediate proceedings under FT (D&R) Act, 1992 to be initiated against the exporters," the order from the DGFT said. The cases wherever necessary would also be investigated by the Economic Offence Wing (EOW) and the CBI.
