Raymond Group’s Chairman and Managing Director, Gautam Singhania, recently paid a staggering penalty of ₹328 crore to settle a case with the Directorate of Revenue Intelligence (DRI). 

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The DRI’s investigation identified Gautam Singhania as both the beneficiary and owner of 138 vintage cars and four research and development (R&D) vehicles. These vehicles were acquired from renowned auction houses worldwide, such as Sothebys, Barret-Jackson, and Bonhams. Allegations surfaced that Singhania’s Raymond Group intentionally undervalued the imported luxury cars, employing intermediaries registered in the UAE, Hong Kong, and the US to circumvent customs levies and duties totaling ₹229.72 crore.

Source: Hindustan Times

The vintage cars, auctioned between 2018 and 2021, were brought into India using invoices from overseas entities like Bentimi FZC, Almaskan Trading LLC, Truemax Ltd, and Orchid HK Ltd. By doing so, the group aimed to evade the hefty customs duties of 215.5% applicable to the import of vintage and luxury cars. Gautam Singhania, in his statement to the DRI, accepted full responsibility for the customs duty shortfall.

The DRI’s investigation report pointed out that Raymond Group allegedly facilitated the submission of manipulated invoices by intermediaries to customs authorities. The group was purportedly fully aware of the actual values of the vintage cars but chose to suppress and misdeclare these values in filed invoices to evade customs duties. The report stated, “The actual value was suppressed and misdeclared filing invoices with lower values to evade customs duties.”

Source: Park+

Responding to the allegations, Raymond Group insisted that the DRI case was an old matter resulting from erroneous calculations. The group maintained that the issue had been resolved, and it was now considered closed. Despite this assertion, the significant penalty paid by Gautam Singhania raises questions about the transparency and compliance within the Raymond Group.