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Finmin orders probe after trading firm threatens to stop operations
Finance ministry orders probe after trading firm threatens to stop operations
New Delhi: The finance ministry has ordered a probe into complaints raised on social media by a trading firm in Tamil Nadu, which alleged it was forced to stop operations on account of harassment by customs officials in Chennai.
The finance ministry said in a post on social media platform X on Thursday that the government has taken cognizance of the matter and that a senior officer from the department of revenue has been deputed to conduct “a detailed factual enquiry, hearing the parties concerned, officials and thoroughly examining all relevant documentary evidence”.
“The matter is being dealt with utmost seriousness, and the government is committed to taking appropriate and expeditious action in accordance with the law,” the ministry said. “It is reiterated that the government is committed to enhancing ease of doing business.”
The social media posts by the firm, Wintrack Inc., which deals in electronic items and accessories, triggered a social media discussion on alleged corruption in customs clearance.
Wintrack alleged on X that its decision to cease all import and export operations in India effective from 1 October comes after “repeated and unjustified harassment by officials at Chennai Customs over the past 45 days”. The company's founder, Pravin Ganeshan, claimed in a video, also shared on social media, about the difficulties he faced in getting shipments released and alleged negotiations for bribes.
Chennai customs rejected the firm's claims, calling them false allegations, and alleged in a post on X that the entity has an established pattern of making unsubstantiated allegations of corruption and bribery in social media, only to delete the post later.
Why the finance ministry stepped in
The move by the finance ministry comes in the backdrop of the government implementing a series of taxpayer-friendly initiatives in recent years. These include the adoption of a taxpayer charter, the introduction of faceless customs procedures, and the establishment of appellate bodies for dispute resolution—with the objective of enhancing transparency and promoting ease of doing business, stated the ministry.The government has over the past 10 years taken steps to ease the compliance burden in customs procedure as part of improving India's ease of doing business ranking and also as part of the drive towards paperless processing during the covid period.
What Chennai Customs said
Chennai Customs authorities said in a statement posted on X that some of the consignments of the company were found to be misclassified and that the importer could not produce the required environment certifications, adding that “allegations of harassment and non-cooperation are demonstrably false”.Chennai Customs authorities alleged that the importer's social media posts reveal a calculated pattern of “allegations of corruption when facing legitimate scrutiny,” followed by deletion of his thread when facts of violation by the importer are placed on record.
“This selective narrative is a deliberate tactic to pressure officials into releasing cargo without following due process. We categorically state that every action taken was legally mandated, procedurally proper, and based on documented violations discovered during examination. Chennai Customs will not be deterred by false allegations from performing its statutory duties. We remain committed to lawful, transparent, and professional conduct while enforcing regulations designed to protect public health, consumer safety, and environmental standards,” said the customs authorities.
They also said that at no stage was any payment or bribe demanded and that all queries pertained strictly to mandatory statutory compliance under Battery Waste Management Rules 2022, BIS Act 2016, Legal Metrology (Packaged Commodities) Rules 2011, and Customs Act 1962.
Source: LiveMint
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