NEW DELHI: One of India’s top aircraft charter companies has been grounded for the past three weeks with the customs department seizing seven of its luxury jets over nonpayment of duties from locations across the country.
Ligare Voyages Ltd, which is associated with the Religare group, has been unable to operate any of its ultra-luxury jets for almost a month, including a FalconBSE -4.98 % 7X that has been seized in Mumbai. A Falcon 2000 each has been seized in Madurai and Delhi, besides Beechcraft and KingAir jets. The jets are chartered by top industrialists and conglomerates in the country. Confirming the seizure, chairman of Central Board of Excise and Customs Najib Shah told ET, “Yes, we have seized the jets as the company has not paid the dues.”
“There was also a court ruling against them and the aviation company did not fulfill the same resulting in contempt,” explained a senior custom official. The official further said that the aviation firm can get the aircraft released by paying the duties and charges due, failing which the next step of confiscation of the aircraft could take place.
While Ligare refused to comment on a detailed questionnaire sent by ET on the matter, sources aware of the matter said that the dispute dates back to 2011 and comes from what the company terms is a ‘misinterpretation’ of customs rules.
The charter company, which was previously named Religare Aviation, is learnt to have refinanced its aircraft in 2011 for which they had to be sent abroad. When the aircraft returned to India, a demand for import duty was raised by the customs department which was disputed by the company that took a stand that the aircraft had been refinanced and had not changed their Indian registration.
Sources said that the company is disturbed by the manner in which the seizure took place last month and that no show-cause notice was given prior to the action. It is also learnt that an offer has been made by Ligare to pay a 2.5 per cent reimport duty on the aircraft even though it does not agree to the interpretation of customs laws on the issue.
With the matter now deadlocked, legal options are being explored by both the Customs department and the aviation company and action is expected in the next few days.
