Gag On Chitalias Ensures Silence

In a brief statement issued in New Jersey, the Chitalias said they were legally bound to silence on all aspects of their dispute with ITC, except in court and in discussions with the Indian government.

It is not only inappropriate but against the court order obtained by ITC Ltd, to discuss any aspect of the pending litigation, the statement, issued in response to numerous inquiries said.

The Chitalias and ITC are embroiled in lawsuits against each other. ITC set the ball rolling, suing their estranged partners for approximately $15 million in a New Jersey federal district court. The Chitalias, in turn, counter-sued for more than $55 million.

 

But the Chitalias also reached out to the Indian government, offering to provide documentation of ITCs foreign exchange machinations in exchange for immunity against prosecution in India.

The Chitalias lawyer would not comment on the offer.

In its statement on the raids on ITC, however, the Enforcement Directorate indicated that it had evidence which showed that ITC had used the Chitalias companies to transfer money and generate fictitious profits in India.

Successful prosecution of ITC officials in India would bolster the Chitalias case in the United States, leaving the Indian company open to the possibility of paying out damages that could amount to millions of dollars .