ADAG confident over impounded yacht case

09 May 2009

The Anil Dhirubhai Ambani Group on Saturday filed a rejoinder in the Bombay High Court disputing the custom department's claim that the company had smuggled in a luxury yacht, Tian, through a "sham transaction'' to show the vessel as an import to evade duty. 

The yacht has been confiscated by the customs, which is seeking Rs28 crore in duty. The customs told the court that "it is not a mere procedural lapse but a deliberate move by the ADAG to evade customs duty through a novel modus operandi''.

The matter was adjourned and the case is now going to be heard by vacation bench, according to a CNBC-TV18 report. However, the ADAG group does not believe that they it is in troubled waters with regards to this customs case, as the rejoinder says the yacht was never intended to be Indian or registered in India. 

Secondly, it says there was no intention of home consumption in this case, so no duty was assessed and no order was required permitting the clearance of the yacht.

ADAG also said, that the boat was transported on a larger vessel considering its range constraints, and also to expedite its arrival into Indian waters. It added that the yatch was shipped on board as a foreign flag sea-going vessel.

According to the ADAG rejoinder, the insurance of the yacht allows navigation in the Mediterranean Sea and the Indian Ocean. It also says that the insurance was underwritten by Lloyds of London. It seeks to explain why the yacht was brought into India in the first place.