CBI Files FIR Against Cadbury India For Fraudulently Availing Area Based Tax Benefits 

The CBI has booked Cadbury India Private Limited for alleged corruption and misrepresentation of facts to fraudulently avail area-based tax benefits in Baddi, Himachal Pradesh. 

After registering an FIR, the officials of the federal probe agency also conducted searches at residential and official premises linked to the accused in Haryana and Himachal Pradesh.

The FIR is an outcome of a preliminary inquiry registered by the agency, which showed that the company allegedly “paid bribes, misrepresented facts and manipulated records to fraudulently avail area-based exemption benefits in Baddi, Himachal Pradesh”.

According to the FIR, an inquiry was conducted by the Anti-Corruption Unit of CBI, Shimla branch over the allegation that Mondelez Foods (earlier known as Cadbury India Limited) had paid bribes, misrepresented facts, and manipulated their records to fraudulently avail area-based exemptions benefits on excise duty and Income Tax.

The agency has alleged that the DGCEI had also probed the matter and slapped a fine of Rs 241 crore on the company. The unit, built in Himachal Pradesh's Baddi region, was reportedly manufacturing 5 Star and Gems chocolates.

Besides the company, the agency has booked a total of 12 individuals, including two of the theb Central Excise officials, the then Cadbury India Limited (CIL) vice-president (finance and compliance) Vikram Arora, and its directors Rajesh Garg and Jailboy Phillips.

The agency has alleged that senior executives of the company conspired with private individuals and made payments to get necessary approvals for setting up the second unit as a separate company to avail tax benefits for which it was not eligible.

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