KOCHI: The Customs on Saturday arrested the CEO of Plus Max, which was operating a duty-free shop at the Trivandrum International Airport, for alleged tax evasion and illegal sales of liquor from its shop using passport details of passengers.
The arrested, R Sundravasan, was produced before the Ernakulam Additional Chief Judicial Magistrate Court (Economic Offence) and remanded in judicial custody. According to an official statement from the Commissionerate of Customs (Preventive), “the CEO of Plus Max Duty Free Shop Pvt Ltd was arrested for illegal sales of liquor imported without payment of Customs duty.
The investigation revealed they had illegally sold/diverted foreign-made foreign liquor from duty free shop and to cover up these illegal sales they had manipulated their sale details and made fabricated returns.”
“Evidence has been gathered pointing to violations which attract action under other laws. The sale details authenticated and submitted by the CEO were found to be fabricated and during the record of statement under Section 108 of Customs Act, he failed to clarify the discrepancies,” the release stated.
“By the illegal activities, the company appears to have wilfully evaded Customs duty to the tune of more than `6 crore which is a non-bailable offence attracting prosecution under Customs Act, 1962.”Meanwhile, there have been allegations the business rivalry between Plus Max and Flemingo, another duty-free shop operator, was said to be the reason for the alleged plot against Plus Max.
The Dubai-based Flemingo had operated the duty-free shop for many years at the Trivandrum airport but later lost the bid to the new operator. It’s alleged even officers in the Customs and Airports Authority of India (AAI) were divided over the issue.
The slugfest in the Customs came out in the open when its Kochi unit refused to comply with an order of the Principal Chief Commissioner (PCC), Chennai, permitting Plus Max to reopen the duty-free shop.