• Introduction Of ITC• Advent Of Scam• Details Of The Scam• FERA Violations• Excise Evasion Fraud
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.
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.
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
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.
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.