Revenue Team In Us To Weigh Chitalia Evidence

While one group in the ministry favours offering the Chitalias immunity against prosecution in India in return for evidence of alleged violations by ITC, the other group is against such a move as it sees it as setting a example that might be misused by other individuals.

Confirming the development, a ministry official said the investigations were "delicately" poised. The official said the ministry will make up its mind on the basis of evidence that the Chitalias are prepared to reveal.

A month ago, the Chitalias through their lawyer had sent a letter to the government, expressing their willingness to reveal the alleged violations made by ITC in its business transactions. The offer was conditional on the government agreeing to give them immunity against the Indian laws.

 

Under the Indian laws, the government has the power to grant "tender of pardon" to any person who is ready to reveal information of prime importance in a particular case. The government decision, however, has to be endorsed by a court of law.

Hectic lobbying is already on in the finance ministry from various parties closely involved in the case. Senior executives of ITC are believed to have had talks with top officials on this matter.

The relationship between the Chitalias, the one-time close associates of ITC, and its top brass soured after the former made numerous allegations against the Indian company involving certain deals, and even named top officials like former chairman K L Chugh to be involved in the deals.

While ITC slapped a $16-million notice on the Chitalias for damages for certain export deals, the latter responded by suing ITC for over $55 million. With depositions from both the sides on in a New Jersey court, the battle between the two is now delicately poised.