4 More Ed Notices To Itc On Cards
The Enforcem-ent Directorate (ED) is likely to issue four additional charge-sheets to tobacco major ITC Ltd sometime during the last week of December this year.
The fresh set of raps, which are expected to be issued by the Calcutta zonal office of the ED, could include alleged Fera violation charges to the tune of $ 7-8 million committed by ITC Ltd during 1991-92 and 1993-94.
With this move, the total amount of alleged Foreign Exchange Regulation Act (Fera) violation charges against the tobacco major is expected to exceed $160 million.
Also Read
The charges of Fera violation will relate to the Calcutta-based tobacco major's exports of leaf tobacco to various overseas companies of its UK-based partner BAT Industries during the said period.
The chargesheets would be issued to the company and its various directors who were members of the board during the concerned period.
ITC Ltd has already been issued chargesheets to the tune of $155 million till now for alleged Fera violations in its dealings. With the additional $7-8 million charges, the total amount of alleged violations against the tobacco company will exceed $160 million.
According to sources, ITC is believed to have posted some reply with the enforcement directorate to the initial set of chargesheets, and they are presently being scrutinised.
The company had requested for a 3-month extension to submit its response to the show cause notices which was granted by the directorate.
The ED had issued an initial set of five chargesheets to ITC Ltd during July this year in connection with alleged Fera violations amounting to $110 million.
This was followed by seven additional chargesheets which charged the company with alleged violations of over $45 million.
These notice had held the company and its board of directors responsible for alleged Fera violations, primarily in connection with the US-based Chitalias, the estranged trade partners of ITC Ltd, and counter trade activities of the company.