The Raymond Group, led by chairman Gautam Singhania, has settled a customs duty dispute with the Directorate of Revenue Intelligence (DRI) by paying Rs 328 crore. The settlement pertains to alleged undervaluation and import duty evasion for 142 cars, including 138 vintage cars and four research & development vehicles.
Raymond Group subsidiary JK Investors (Bombay) Ltd. paid the amount, which includes differential duty, interest, and a 15% penalty, as per the DRI closure report obtained by The Economic Times. The case was closed in January 2023 but remained unreported until now.
The DRI identified Singhania as the beneficial owner and accused him of procuring the cars through group companies from renowned auction houses like Sotheby's, Barrett-Jackson, and Bonhams. The agency alleged that the cars were undervalued and routed through intermediary companies in the UAE, Hong Kong, and the US to avoid a total customs duty of Rs 229.72 crore.
A JK Investors (Bombay) spokesperson acknowledged the closure but characterized it as a case of erroneous calculation already resolved. A Raymond Group executive, speaking on condition of anonymity, disputed the DRI's claim of the exchequer's loss, stating it was much lower due to penalties and interest. They further denied any attempt to avoid taxes through intermediary companies.
The DRI reported that the cars were directly imported from the US and UK despite invoices showing companies based in Dubai, the US, and Hong Kong as sellers. The motive for routing through intermediaries was allegedly to evade the 251.5% customs duty applicable to vintage car imports.
As per report of ET, Whenever he found or was notified about vintage cars suitable for display in the museum he would ask his team to check the details including the price, according to the closure report. The DRI said the value of the cars was misdeclared. The DRI order states that Singhania, the beneficial owner of the vintage cars imported under the Importer Exporter Code (IEC) of Raymond Group and its business associates, provided inaccurate values in the bills of entry and presented incorrect invoices to Indian customs.