The fraud in total runs upto Rs. 700 million.

It is said that the company is attempting to evade payment by the influence of a prominent government minister and that Customs have even briefed the Presidential secretariat on the matter.

Diplomatic tensions

Speaking to 'Sri Lanka Mirror', a spokesperson from the Customs has said that this could even lead up to tensions in diplomatic-level ties between Sri Lanka and India.

We also learn that the Indian High Commission has informed the company CEO - Jinesh Hegde on several accounts to clear the matter after paying the due amount as it could have an adverse affect on trade agreements between the two countries that are to be inked in the near future.

The fraud

The imported shipment of Tele line Equipment has been released by Airtel on a submission of a bank guarantee of 153 million being the duty exposure according to the consignee valuation and declaration.

Later customs enforced the proper duty exposure of 350 million and Airtel agreed to pay the complete consideration.

No show in court

However, Airtel with honoring their commitment engaged their Lawyer A.L.M. Ameen (Junior) went and filed a court case where it was expected to be explained by a Senior Officer of the Airtel to customs as to why the wrong declaration was made.

Although the court case was taken up on May 04, 2016, the CEO of Airtel had failed to appear. The case is to be taken up again tomorrow.

2nd fraud

Also, the company has wrongfully brought in a Transmitting Equipment Shipment using the duty free facility of infrastructure expansion and the network role out.

The fraud value of the Customs Duty during this import is said to be Rs. 350 Million. Customs has also detected this and enforced the duty concession since it was not utilized for the purpose of declaration.

The Customs will impose a penalty for both cases amounting to over Rs. one Billion.

Similar frauds

However, we learn that Suntel, Lanka Bell and Hutch and Sri Lanka Telecom had also been involved with similar frauds.

Sri Lanka Telecom has agreed to settle their default over Rs. 1.7 Billion and had settled part payment of this while the others lost the cases at the Supreme Court.

The Customs have enforced and charged penalty of over Rs. 2 Billion from the companies.

No comments

Upon inquiring from 'Sri Lanka Mirror', the corporate and internal communications head of the Airtel - Ms. Shakila Kamalendiran said the company declined to comment on the matter.

Earlier, media reported that CEO of Airtel, Sri Lanka - Jinesh Hegde has been summoned to the Customs for an inquiry on this regard.

Cannot be sold

Tomorrow (06) we will reveal why Bharti Airtel Lanka cannot be sold.