The Hindu Business Line : HC asks Raymond to deposit Rs 16 crore in cash in excise case

MUMBAI: The Bombay High Court has ordered garment firm Raymond Ltd to deposit Rs 16 crore in cash and a bank guarantee of the same amount with the excise department in a duty evasion case.

According to the order passed by the court on Tuesday, if the amount and the bank guarantee are not deposited within two weeks, interim protection from arrest granted to Raymond's General Manager, Mr Vasant Naag would lapse.

The excise department contended that Raymond had claimed excise exemption last year on Mr Naag's advice, but it was not entitled to the same. Fearing that he may be arrested, Mr Naag with Raymond moved the High Court in April.

The High Court on April 9 had granted Mr Naag interim protection from arrest. On May 6, after hearing the excise department's argument, division bench headed by Justice Mr S Radhakrishnan extended the interim protection, but on the condition that compan y deposits Rs 16 crore in cash and a bank guarantee of the same amount with the department.

The probe in the matter can go on, court said, adding that if Raymond fails to deposit the amount and bank guarantee in two weeks, the protection from arrest would lapse. - PTI

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