Itc fraud case

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  • Itc fraud case

    1. 1. • Introduction Of ITC• Advent Of Scam• Details Of The Scam• FERA Violations• Excise Evasion Fraud
    2. 2.  Founded in 1790 by Henry Overton Wills. Started by the UK-based tobacco major BAT. ITC Limited company headquartered in Kolkata. Headed by Yogesh Chander Deveshwar. Revenues is $6 billion and a market capitalization of over $30 Billion. Started as Imperial Tobacco Company. Initially, it was majorly in the business of cigarette manufacturing and tobacco procurement. ITC diversified business to other industries such as hotels, stationery and FMCG products.
    3. 3.  Enforcement Directorate(ED) conducted raids on the variousestablishments of tobacco to hotels major ITC in Kolkata in October1996.ITC violated FERA (Foreign Exchange Regulation Act) regulationsto the tune of $100 million.ED, Customs and Department of Revenue Intelligence (DRI)arrested the director and head R. K. Kutty and few more ITCexecutives for interrogation.ITC involvement in the Excise Evasion and share manipulation.
    4. 4.  As per ITC instruction around $83 million was transferred to India. ITC also manipulate the invoices related to exports.A sum of $ 6.5 million was transferred from ITC Global to theChitalias companies. Over-invoicing of machinery imported by ITC. ED raided on nearly 40 ITC offices
    5. 5.  ILTD transferred $4 million to a Swiss bank account. ITC also made payments to non-resident shareholders. ITC under-invoiced exports to the tune of $1.35 million. ITC transferred funds in an unauthorized manner. Use of funds retained abroad for personal use by ITC executives.
    6. 6.  ITC involvement in the excise evasion fraud of Rs.799 crore. Penalty of Rs.74 crore. Kept higher effective prices than the maximum retail prices. The arrests of 2 former chairmen and 8 executive directors.

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