Sony, Toshiba on wrong side of law here; face DRI scrutiny

In a bid to plug loopholes in the existing free trade agreements signed by India with partnering countries, revenue intelligence officials are going all out to nail duty evaders. CNBC-TV18 learns that Sony and Toshiba are facing the Revenue Intelligence Department's scrutiny for allegedly misusing the Asean-India Free Trade Agreement norms that allow duty concessions for imported goods.

Sources say the companies allegedly routed ‘Made in China’ goods via Indonesia and Malaysia.

The Directorate of Revenue Intelligence, probing Sony and Toshiba, is likely to issue showcause notices to Sony and Toshiba. It had earlier issued show cause notice to Haier India for violation of norms.

When contacted, Sony told CNBC-TV18: "We understand that an enquiry is being conducted by DRI in relation to verification of Import of LCD Televisions under the ASEAN-India FTA. We have extended necessary co-operation to DRI in this enquiry." Toshiba could not be reached for comment.