The investigating agency is assisting the Interpol is probing alleged payment of bribe in India in a seven-year-old tax evasion case
In what could cause some discomfort to confectionery giant Mondelez International (India), formerly Cadbury India, the Central Bureau of India (CBI) has issued summons to ex-employees of the company, asking them to be available for questioning in a seven-year-old tax evasion case.
A CBI spokesperson told DNA Money that being the nodal agency in India, CBI is assisting the Interpol in the case, refusing to share anything further in the case. The seven year old case refers to a saving of over Rs 600 crore the company would have made after it set up a new unit in Baddi, Himachal Pradesh. After applying for excise and other related rebates, the company is then alleged to have paid bribe to a consultant to get permissions in place.
Commenting on the development, a spokesperson for Mondelez said, "We continue to cooperate with all authorities to address this matter, which relates back to 2010-11, through the administrative and judicial process. This includes providing our executives with appropriate legal support during the process. We firmly believe that the decision to claim excise tax benefit is valid and that our executives acted in good faith and within the law in the decision to claim excise benefit in respect of our plant in Baddi. We are not aware of any criminal proceedings having been initiated by any authority against our company or ex-employees."
The spokesperson said that the case is currently sub-judice as an appeal is pending before the Customs Excise and Service Tax Appellate Tribunal (CESTAT).
CBI officials said the questioning, which was scheduled for early this week, had to be cancelled at the last moment as investigators from the US who were also supposed to join in the questioning could not make it to Mumbai. The new date is yet to be finalised. Despite efforts, DNA Money could not verify the names of officials called for questioning.
The US market regulator, Security and Exchange Commission (SEC), had earlier charged Mondelez with poor internal control and violation of the Foreign Corrupt Practices Act (FCPA) in India. The US through official channels has sought the help of CBI in the probe. As per the initial investigation by market regulator in the US, the company had applied for excise and other related rebates around seven years back when it set up a new unit in Himachal Pradesh, which could have resulted in a saving of over Rs 600 crore for the company during the course of a decade. The company is then alleged to have paid a bribe to a consultant to get permissions for the same.
Meanwhile, Mondelez in a settlement earlier this year with the SEC paid $13 million (approximately Rs 90 crore) without admitting or denying the charges. "Mondelez International Inc and Cadbury Limited are pleased to have reached an agreement with the SEC to settle charges related to internal controls and books-and-records provisions of the FCPA, without admitting or denying the charges. As part of the settlement, Mondelez International Inc has agreed to pay a civil penalty of $13 million to resolve the investigation," the company spokesperson had earlier said.
THE ISSUE
- The company had applied for excise and other related rebates seven years back
- The company was alleged to have paid a bribe to a consultant to get permissions for the same
- The US market regulator had earlier charged it with poor internal control
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 "Cadbury India")
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