2. • Introduction Of ITC
• Advent Of Scam
• Details Of The Scam
• FERA Violations
• Excise Evasion Fraud

3.  Founded in 1790 by Henry Overton Wills.
 Started by the UK-based tobacco major BAT.
 ITC Limited company headquartered in Kolkata.
 Headed by Yogesh Chander Deveshwar.
 Revenues is $6 billion and a market capitalization of over $30
Billion.
 Started as Imperial Tobacco Company.
 Initially, it was majorly in the business of cigarette
manufacturing and tobacco procurement.
 ITC diversified business to other industries such as
hotels, stationery and FMCG products.

4.  Enforcement Directorate(ED) conducted raids on the various
establishments of tobacco to hotels major ITC in Kolkata in October
1996.
ITC violated FERA (Foreign Exchange Regulation Act) regulations
to the tune of $100 million.
ED, Customs and Department of Revenue Intelligence (DRI)
arrested the director and head R. K. Kutty and few more ITC
executives for interrogation.
ITC involvement in the Excise Evasion and share manipulation.

5.  As per ITC instruction around $83 million was transferred to India.
 ITC also manipulate the invoices related to exports.
A sum of $ 6.5 million was transferred from ITC Global to the
Chitalias companies.
 Over-invoicing of machinery imported by ITC.
 ED raided on nearly 40 ITC offices

6.  ILTD transferred $4 million to a Swiss bank account.
 ITC also made payments to non-resident
shareholders.
 ITC under-invoiced exports to the tune of $1.35
million.
 ITC transferred funds in an unauthorized manner.
 Use of funds retained abroad for personal use by
ITC executives.

7.  ITC involvement in the excise evasion fraud of
Rs.799 crore.
 Penalty of Rs.74 crore.
 Kept higher effective prices than the maximum
retail prices.
 The arrests of 2 former chairmen and 8
executive directors.