Gtc Ind Faces Contempt Notice

Sanjay Dalmia-promoted GTC Industries is at loggerheads with the central excise department again with the Directorate General of Anti Evasion (excise) filing a complaint for contempt of court in the Delhi High Court against the tobacco company.

The contempt of court notice was filed by the anti-evasion directorate after GTC failed to keep alive its bank guarantees worth Rs 7 crore with the Punjab and Sind Bank as directed earlier by the high court on August 26, 1994.

The bank guarantee was part of the Rs 35-crore pre-deposit which the high court had ordered the company to pay up, after the tobacco company went in appeal to the Customs Excise and Gold Appellate Tribunal (Cegat) against the orders of the central excise commissioner (Delhi) given in 1992, directing the company to pay up Rs 70 crore towards excise duty.

 

Besides GTC, the 'contempt of court' complaint also names individuals like Sanjay Dalmia, chairman of the company, J P Khetan, managing director, Y S Kamal and Kamal Budhiraja. The Delhi high court has already ordered for issue of notices to the above mentioned on December 3, 1997.

GTC had earlier approached the Supreme Court and the high court to plead that the company, which has already been referred to the BIFR for potential sickness, is going through a severe financial crisis and is not in a position to deposit Rs 7 crore immediately.