CBI raids in Haryana and Himachal on Mondelez Foods premises
The central agency has filed a case against the company, its former executives and several government officials for alleged misrepresentation of facts to avail area-based tax exemption benefits worth around Rs.241 crore in Baddi town of Himachal Pradesh, officials said.
The Central Bureau of Investigation (CBI) on Thursday raided five locations in Himachal Pradesh and Haryana in connection with a tax case against Mondelez Foods Private Limited (earlier known as Cadbury India Private Limited), people familiar with the matter said.
The central agency has filed a case against the company, its former executives and several government officials for alleged misrepresentation of facts to avail area-based tax exemption benefits worth around Rs.241 crore in Baddi town of Himachal Pradesh, officials said.
Officials said that a preliminary enquiry (PE) filed by the CBI in 2017 was converted into an FIR following a nod from the Central Vigilance Commission (CVC). A PE is the first stage of any investigation by the CBI.
According to the FIR filed by the CBI, the 2017 enquiry revealed that the chocolate firm had proposed a manufacturing unit in Baddi in 2007 in order to avail area-based excise and tax exemption. To avail the same, some members of the executive board of the company, along with key managers, collectively manipulated records, engaged intermediaries to route bribes to government officials and covered up evidence, the FIR added.
Cadbury officials, the CBI said, “paid bribes, misrepresented facts and manipulated records to fraudulently avail area-based exemption benefits (central excise and income tax) in Baddi, Himachal Pradesh, knowing fully well that they were not entitled to avail area-based tax exemption benefits”.
Instead of expanding production by creating a unit, Cadbury decided to increase the production capacity in its existing unit and avail tax exemption from May 2005, the FIR said.
Mondelez India said it was yet to receive any formal communication in this regard from the authorities.
Among those named in the FIR include Cadbury’s then vice president (finance) Vikram Arora, Rajesh Garg (former director, finance) and former director Jaiboy Phillips (then director, supply chain).
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