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    Cadbury India Tax fraud: CBI books company for illegally obtaining factory licence in 2007

    Cadbury India Tax fraud: CBI books company for illegally obtaining factory licence in 2007

    Cadbury India Tax fraud: CBI books company for illegally obtaining factory licence in 2007
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    By CNBCTV18.com  IST (Published)

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    CBI accuses executives and certain individuals of Cadbury India of making illegal payments to obtain certain approvals for which they were not eligible

    The Central Bureau of Investigation (CBI) recently filed a tax fraud case against Cadbury India, for alleged misappropriation of facts for tax benefits for a factory licence in Baddi, Himachal Pradesh.
    The case was registered under IPC Section 420 (Forgery) and the Prevention of Corruption Act. CBI registered the FIR after carrying out a preliminary enquiry.
    The  FIR against Cadbury India, which is currently known as Mondelez Foods, said that some members of the then executive board of the company and key managers forged records and bribed authorities to cover up evidence that came up during an investigation.
    On March 17, CBI carried out searches at locations in Himachal Pradesh, Mohali and Mumbai. Economic Times reported that the company managed to get area-based exemptions of around Rs 240 crore for the Himachal factory.
    The hilly state has special benefits for new industrial units under which companies can opt not to pay excise duties for up to 10 years. The CBI said that Cadbury India was not entitled for these benefits. The factory was set up in 2005 for manufacturing Bournvita.
    Cadbury had proposed to create the Baddi factory in 2007 for the exemption. The CBI said the company later decided to only expand a unit that was built in 2005.
    Around 12 individuals have been booked by the CBI, including senior executives of Cadbury India. The probe agency alleged that the firm's executives and certain individuals made illegal payments to obtain certain approvals for which they were not eligible.
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