The Hindu : National : Car duty evasion racket: one arrested

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Wednesday, Sep 07, 2005

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National

Car duty evasion racket: one arrested

Bhandari's name cropped up after a SUV was found in the possession of Jyoti Basu's son

NEW DELHI: The Directorate of Revenue Intelligence has arrested Sanjay Bhandari, who is alleged to be involved in a duty evasion racket in imported cars. Nine imported cars have been seized in a countrywide raid.

Mr. Bhandari alleged to have worked under the guise of a hotelier and obtained a licence from the Director-General of Foreign Trade (DGFT) of the Commerce Ministry for importing cars to serve clients.

At least four luxury vehicles — a BMW, a Lexus, a Jaguar and a Toyota Land Cruiser — were seized from different places in Delhi.

Mr. Bhandari's name cropped up after the DRI stumbled upon a luxury Sports Utility Vehicle in the possession of the former West Bengal Chief Minister, Jyoti Basu's son Chandan Basu, costing about Rs. 40 lakhs.

Investigations were continuing and efforts afoot to trace other "such vehicles" passed on to people without paying the duty, said a DRI official.

Basu's son did not

import car: lawyer

In Kolkata, Chandan Basu's lawyer N.G. Khaitan said Mr. Basu did not import the car as alleged in a section of the press. He told reporters that the SUV was imported by a New Delhi-based private company V.K. Tour and Travels in 2000. After remaining idle for four years, the vehicle was hired by Mr. Basu for Rs. 48,000 a month.

The SUV was registered in New Delhi, but brought to Kolkata for facilitating Mr. Basu's business. Mr. Khaitan said Mr. Basu needed a bigger vehicle to run his real estate business and hence entered into an agreement with the tour and travel company.

Asked why Mr. Basu hired the foreign vehicle from a New Delhi-based company, Mr. Khaitan said that most foreign cars were available in New Delhi. Mr. Basu did not evade tax, Mr. Khaitan said, adding his record was clean. But he admitted that the vehicle had been seized.

``Om Udyog Ltd., of which Mr. Basu is the managing director, took the car on hire purchase from its owners V.K. Tours and Transport of Delhi on September 18, 2004, after it was imported in 2000," Mr. Khaitan said. — UNI, PTI

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