'Being dealt with utmost seriousness': Revenue department to probe Wintrack's Chennai customs 'corruption' claims; senior officer deputed

The Finance Ministry announced on Thursday that the Department of Revenue (DoR) will conduct a fair and transparent investigation following the allegations by Wintrack Inc (Chennai) of "corruption and harassment" against Chennai Customs. The ministry confirmed that the matter is receiving serious attention.

The ministry communicated the government's action through X saying, "The Government has taken cognizance of the matter raised by M/s Wintrack Inc (Chennai). The Department of Revenue (DoR) @FinMinIndia has been asked to undertake a fair, transparent, and fact-based inquiry into the present issue."

The Finance Ministry's Thursday announcement confirmed that a senior DoR officer would conduct a thorough investigation, including interviews with relevant parties and examination of documentary evidence. "A Senior Officer from DoR has been deputed to conduct a detailed factual enquiry, hearing the parties concerned, officials and thoroughly examining all relevant documentary evidence," it said, adding that, "The matter is being dealt with utmost seriousness, and the Government is committed to taking appropriate and expeditious action in accordance with the law. It is reiterated that the Government is committed to enhancing ease of doing business."

The ministry highlighted recent reforms, including the Taxpayer Charter, faceless customs procedures, and new dispute resolution mechanisms, all aimed at improving business operations. "The matter is being dealt with utmost seriousness, and the Government is committed to taking appropriate and expeditious action in accordance with the law. It is reiterated that the Government is committed to enhancing ease of doing business," it further added.

This comes after Wintrack Inc, on Wednesday, announced its decision to "cease import/export activities in India" from October 1, citing "relentless harassment by Chennai Customs officials over 45 days."

The Central Board of Indirect Taxes and Customs (CBIC) addressed these claims on Wednesday, stating the "issue pertains to misdeclaration and misclassification by the importer." Chennai Customs had previously responded, and appropriate legal measures were promised.

Wintrack Inc's allegations included claims of retribution following exposure of "bribery practices." They announced cessation of operations from October 1, citing harassment that "crippled operations." In a subsequent post, founder Prawin Ganeshan shared a video detailing events leading to closure, urging collective action against corruption on Gandhi Jayanti, stating, "I will stay alive,i will survive,never give up."

Ganeshan's video recounted incidents from January, describing refused bribe requests and subsequent recording of agent conversations. He detailed escalating issues between May and August, including alleged bribe demands and shipment delays.

He mentioned attempting business through his wife's company, facing similar challenges. Ganeshan concluded by encouraging other traders to speak against corruption.

CBIC's response, tagging the Finance Ministry and Minister Nirmala Sitharaman, maintained the issue stemmed from misclassification. They acknowledged new allegations and promised thorough investigation with appropriate legal action.