Gautam Singhania, the CMD of Raymond Group, has settled a Directorate of Revenue Intelligence (DRI) case involving the import of 142 cars by paying penalties amounting to Rs 328 crore. The case, initiated amid Singhania’s ongoing divorce dispute with Nawaz Modi Singhania, was registered by the DRI. The payment, inclusive of interests and a 15% differential duty, was made through the Raymond Group unit JK Investors (Bombay).
The DRI investigation revealed that Gautam Singhania, identified as the beneficiary and owner, possessed 138 vintage cars and four research and development vehicles acquired from renowned auction houses such as Sotheby’s, Barret-Jackson, and Bonhams. Allegedly, Singhania’s leadership at Raymond Group involved undervaluing these imported luxury vehicles, which were channelled through intermediaries registered in the UAE, Hong Kong, and the US. The aim was to evade customs levies and duties totalling Rs 229.72 crore.
Raymond Group imported vintage cars auctioned from 2018 to 2021 using invoices from overseas entities like Bentimi FZC, Almaskan Trading LLC, Truemax Ltd, and Orchid HK Ltd. This allegedly enabled the evasion of customs duties, which stand at 215.5% for the import of vintage and luxury cars. Gautam Singhania, a devoted car collector, had intentions to establish a car museum at JK House on Cumballa Hill.
In his statement to DRI, Gautam Singhania took full responsibility for the customs duty shortfall. The DRI investigation report claims that Raymond Group intentionally presented manipulated invoices from intermediaries to customs, fully aware of the actual values of vintage cars. The investigation suggests that the group suppressed and misdeclared the true values in invoices to evade customs duties. Despite Raymond Group asserting that the DRI case was an old matter involving erroneous calculations, they maintain that the issue is now closed.
In November last year, the Chairman and Managing Director of the Raymond Group, Gautam Singhania, revealed his decision to separate from his wife Nawaz Modi after 32 years. In a social media post, Singhania expressed “This Diwali is not going to be the same as many in the past. 32 years of being together as a couple, growing as parents and always being a source of strength to each other…we traversed with Commitment, resolve, and faith as along came the two most beautiful additions of our lives,” on X.
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