Pawan Ruia gets DRI notice

The directorate of revenue Intelligence has issued a show cause notice to Pawan Kumar Ruia, who had acquired public sector engineering giant Jessop & Co and ailing tyre company Dunlop India Ltd, for allegedly claiming false export benefits.

"We have issued notice to Ruia for claiming export benefits to the tune of Rs 125 crore (Rs 1.25 billion)," Sanjib Sachdeva, SP, DRI told PTI in Kolkata on Monday. He said the notice had been issued in the first week of December and the respondent has been given 30 days' time to respond to it.

Sachdeva further said the notice issued by the DRI would be adjudicated by the Commissioner of Customs.

The notice has been issued on the basis of investigation against Ruia in 2004-05, he said, adding that the benefits were claimed in lieu of purported exports during 2001 to 2004. But only no exports took place during the period.

When contacted, Pawan Ruia termed the charge as false and fabricated, but said, "We have received the notice which is being examined by (our) legal people". The notice would be challenged at the appropriate forum.

Speaking over phone, Ruia said, "The applicability of Customs Act and DRI has already been challenged in the High Court for which DRI and Customs department has not yet filed a rejoinder. The last date for that was (sometime in) August."

"We will challenge the show cause notice immediately at the appropriate forum and time will prove who is right," he added.  Ruia accused DRI of trying to defame him after watching the developments of Dunlop takeover.

"The matter was pending with DRI for the last one and half years but till date they could not find time to file the show cause notice till now. This notice is completely illegal," Ruia said.

He also clarified his involvement in the notice, saying, "The show cause notice is (served) on companies and I am (only) one of the party to it."