Customs authorities slap IndiGo with ₹2.76 cr penalty; airline to appeal

IndiGo confirmed in a filing that the principal commissioner of Customs in Ahmedabad has imposed a fine of ₹2.20 crore on it, while the principal commissioner in Meenambakkam has levied an additional

IndiGo Airlines, India's largest by market share, is facing fines of more than ₹2.76 crore from customs officials.

 

On Tuesday, in a regulatory filing, IndiGo confirmed that the principal commissioner of Customs in Ahmedabad has imposed a fine of ₹2.20 crore on it, while his counterpart in Meenambakkam, Chennai, has levied an additional penalty of ₹56.20 lakh.

 

The airline was given formal notices regarding these penalties from both authorities on May 26 and 27. It has said it plans to challenge both decisions.

 

According to the filing, customs departments have confirmed the demands for customs duty from the airline. However, IndiGo has stated that it believes the duty has been paid correctly and that it has a strong case. "Accordingly, appeals are being filed before the appropriate appellate authority," the statement noted.

   

InterGlobe Aviation, which is IndiGo’s parent company, has clarified that these developments will not have a significant impact on the financials, operations, or business activities of the company.

 

Earlier in the day, InterGlobe Aviation promoter Rakesh Gangwal and his family trust sold a 5.7 per cent stake in the airline for about ₹11,559 crore through a block deal. The share sale is part of Gangwal's decision in February 2022 to trim his shareholding after a bitter feud with co-founder Rahul Bhatia over alleged corporate governance issues.

 

Shares of InterGlobe Aviation dipped by nearly 2 per cent on Tuesday, closing at ₹5,313.15 on the BSE.