Facing massive personal fines, Samsung India executives take the legal route, reportedly arguing they are scapegoats in a tariff dispute over telecom equipment imports. No official comments from the company, though.
Some senior officials from Samsung India have approached the Bombay High Court in an attempt to overturn personal penalties totalling $81 million. This was imposed as part of a wider $ 601 million tax demand issued by Indian authorities over alleged misclassification of telecom imports.
The case centres on a customs dispute, with Indian tax officials alleging that Samsung India and its employees incorrectly labelled mobile tower components between 2018 and 2021 to avoid higher duties.
While Samsung itself is facing the bulk of the claim—approximately $520 million—the remainder targets its executives personally, accusing them of knowingly aiding the misclassification.
Among those challenging the penalties are key figures from the company’s logistics, finance, and network departments. They include Ravi Chadha, the head of logistics; Sung Beam Hong, vice president of the network division; and Sheetal Jain, general manager of finance.
According to The Economic Times, each of the seven executives has filed separate but nearly identical pleas. Chadha reportedly claimed that the penalty was issued within days of submitting a detailed defence comprising hundreds of pages. He argued that the brief review period indicated a lack of proper evaluation by the authorities.
Chadha, who has been ordered to pay ₹950 million ($11.1 million), stated in court documents that the matter revolves around differing interpretations of tariff codes and insisted that no criminal intent was involved.
He further asserted that the financial burden imposed is unrealistic, stating it would take him more than a century to repay the amount on his current salary.
Samsung India has denied any wrongdoing and is simultaneously contesting the broader tax demand before an appellate tribunal. The same law firm, Lakshmikumaran & Sridharan, is representing both the company and the executives.
Neither Samsung India nor India’s tax department has commented publicly on the ongoing court cases.
