THIRUVANANTHAPURAM: There seems to be more to it than meets the eye in the row raging at the Trivandrum International Airport duty free shop (DFS). According to industry sources, business rivalry is at the core of the goings-on over the past couple of weeks. At the two ends of the slugfest are Plus Max and Flemingo, the DFS’ present and erstwhile operators, respectively. Add to that a deep division within the Customs department, allegations involving Airports Authority of India (AAI) and its director, the picture is complete.
The latest development in the drama saw the Cochin Customs department refusing to comply with the order from its higher authority, the Principal Chief Commissioner (PCC), Chennai to reopen the DFS. While the outlet was closed down on April 20 as per an order by the Superintendent Air Customs, Trivandrum, in the wake of alleged tax evasion charges, the order to reopen was issued on April 27. The DFS is yet to be reopened.
In a letter addressed to Plus Max, PCC C P Rao said instruction has been issued to open the DFS following an order issued by the Commissioner of Customs (Preventive), Cochin as per Section 58 (B) of the Customs Act.
The Cochin Customs has so far refused to comply with the PCC’s order saying it has no legal validity. Senior officers at Cochin Customs are holding the position the DFS would not be allowed to function till the Plus Max clears the charges raised by the department. They claim it is not possible to give a clean chit to company against which probe pertaining to tax evasion charges is in progress.
It is also their position that the Customs Principal Chief Commissioner (PCC), Chennai, though in charge of the Kerala zone while the designated officer was on leave, issued the order without the mandatory show-cause notice to the parties concerned as required under the Customs Act.However, industry insiders point to a conflict of business interest between Plus Max and Dubai-based Flemingo, which operated the DFS for many years at the Trivandrum International Airport but later lost the bid to the new operator, as the trigger behind the latest row.
“Suddenly, there are wild allegations against AAI and airport director, against immigration, against CISF, and against DFS, and that’s intriguing, considering that the firm, a stranger in Thiruvananthapuram could be accused of wrong doing and conspiracy with all other government agencies from the start of business operations after such prolonged legal battle staged by its competitor who lost out the bid. That this is a motivated campaign is clear by the fact that the investigating department in this case has, without jurisdiction, attacked the whole tender process and award of tender to Plus Max, when the issue was settled by an order of the apex court,” pointed out a source familiar with the developments.
Though the bid was won by Plus Max way back in January 2016, Flemingo began waging a number of legal battles against Plus Max and the AAI. Finally, the issue was settled in the Supreme Court and Plus Max opened the shop in October 2017, only to be forced to down shutters in a matter of a few months.
This is the maiden entry of Plus Max in the Indian DFS scene while Flemingo has been enjoying near monopoly in this sector for many years. Plus Max offered 46 per cent of revenue share to the government, a massive rise over 18 per cent that was hitherto offered by the erstwhile player, including Flemingo.
The Cochin Customs department has also issued summons to 18 airline companies operating out of the Trivandrum International Airport, apart from the airport director as also a few Customs officers, asking explanation as to how the details of the passenger manifest got shared with a business outlet.