Diageo office raided by DRI for evading import duties

Cleary, going by what Vineeta has been saying the Diageo officials must have had a hangover this morning. Sketchy details as to what the investigation came out with but what I have picked up from top sources is that the Diageo Group used Sun Tan Trading Company, which is a Mumbai based company, allegedly, as a front company for importing their goods at a lower value. So that is the ground based on which these raids were carried out last night on the Diageo Office premises as well as their front company which is Sun Tan, that is also what they are telling us.

Sources also said that the Diageo Group, allegedly, used this route for importing their goods at a lower value since 2001. So it's a long period which this investigation goes back to.

Another bit of information that we are picking up from our sources is that this route which was allegedly used by Diageo Group led to under invoicing and hence alleged custom duty evasion. The Director of Revenue Intelligence is a body which falls under the Central Board of Excise and Customs. Their core activity is to detect alleged customs violation. What I am picking up now is that some of the officials of both the companies are currently being questioned by the Director of Revenue Intelligence, some statements are also been recorded. We have got a preliminary figure. We understand that the alleged customs duty evasion by the Diageo Group could be a minimum of, at least, Rs 50 crore. However, sources are telling us that this amount could progress and it could increase in the coming days.