Cadbury India booked by CBI over Himachal factory license allegation; responds on FIR

Hours after the CBI booked Cadbury India Private Limited (owned by Mondelez Foods Private Limited) for alleged fraud, the company has now responded to the allegations on Thursday. Cadbury India once again found itself in troubled waters after a case had been registered against the company on Wednesday for alleged corruption, fraud, and availing area-based tax benefits. 

Mondelez India spokesperson said that in the year 2019, the company settled a potentially protracted litigation through the Sabka Vishwas (Legacy Dispute Resolution) Scheme. The company awaits formal communication from the authorities.

What is Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019?

The Sabka Vishwas Scheme, 2019 is a scheme proposed in the Union Budget, 2019, and introduced to resolve all disputes relating to the erstwhile Service Tax and Central Excise Acts, which are now subsumed under GST, as well as 26 other Indirect Tax enactments (as listed below). The scheme is for the taxpayers who wish to close their pending disputes, with a substantial relief provided by the government.

Benefits of this scheme

This scheme offers several lucrative resolution benefits to taxpayers, such as-

• Taxpayers can pay the outstanding tax amounts due and be free from any other consequences under the Law. 
• Taxpayers will get substantial relief in the form of full waivers of interest, penalties and fines. 
• There will be a complete amnesty from prosecution proceedings.

Cadbury India Corruption case

The CBI has registered a case against Cadbury India and central excise officials in connection with alleged irregularities and corruption for obtaining a license of Cadbury chocolate factory in Himachal Pradesh's Baddi. The case has been filed under IPC 420 (forgery) and the Prevention of Corruption Act. 

Last year, the company had settled the tax disputes pertaining to its plant in Baddi, Himachal Pradesh under the government's Sabka Vishwas Scheme. The firm, which was accused of evading taxes of about Rs 580 crore, paid Rs 439 crore under the scheme in January 2020. At that time, Mondelez had made headlines with its Rs 439 crore tax settlement which was touted as the biggest settlements under the Centre's Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 which allows the "quick closure" of litigation pertaining to the pre-GST regime.