Consequences of Customs Duty Evasion in India - Sheetal Mafatlal Arrested for Carrying Undisclosed Ornaments

I would like to draw my readers’ attention towards the "customs duty evasion issue in India" by highlighting the recent Sheetal Mafatlal's arrest controversy. She was arrested at Mumbai airport and detained in custody for false declarations of gold and diamond jewelries she was carrying on her way back from London. The Air Intelligence Unit arrested her on "false declarations and smuggling gold ornaments" charges. Sheetal Mafatlal is the president of Mafatlal Luxury Ltd and wife of industrialist Atulya Mafatlal. It’s been said that the ornaments were worth Rs 51 lakh to Rs 80 lakh.

Advocate Sujay Kantawalla, specializing in customs cases said “In a bailable offense how can person be in custody even for a minute? I feel the magistrate was misled by the customs officials.” This is because Sheetal Mafatlal was carrying gold and diamonds whose worth was estimated less than Rs 1 crore. This does not provide a sufficient ground for custody.

Sheetal and her husband stated to be victimized by their family members because of the ongoing property litigation. Late Yogendra Mafatlal had during his life time given control of the Mafatlal companies to Atulya and had also distributed family property to Atulya and his four daughters, Kunti, Gayatri, Malvika and Aparna and their husbands. But property dispute has increased in their family by every passing year.

To reduce the revenue loss in India, stringent measures are being taken against people who evade customs duty. According to the 2007 Finance Bill, government had proposed to take strict actions against wrong declaration of the value of goods exported or any fraudulent methods used to hide goods in the customs checks.

The evasion amount however has been raised to Rs 1 crore. Initially it was possession more than Rs 1 lakh. The amount of duty being evaded should exceed Rs 30 lakh. People found guilty can be fined or punished from a year to seven years depending upon the severity of crime. Product malfunction attorneys said “I have heard that these stringent customs evasion norms in India have increased the government revenues.”