Govt orders inquiry into Wintrack's allegations of 'harassment' by Chennai Customs

A senior official from the department of revenue will head a comprehensive investigation into the matter, said the ministry.

Inquiry ordered

In an official statement posted on X, the ministry said, “The government has taken cognizance of the concerns raised by M/s Wintrack Inc (Chennai).” It further confirmed that the Department of Revenue (DoR) has been directed to conduct a “fair, transparent, and fact-based inquiry” into the matter.

The inquiry will involve listening to all stakeholders, scrutinizing the conduct of involved officials, and thoroughly reviewing pertinent documents and evidence.

Further in its post, the ministry flagged a series of recent reforms designed to simplify business procedures for taxpayers and traders. Their initiatives included the implementation of the Taxpayer Charter, the introduction of faceless customs processes, and the establishment of new appellate bodies to streamline dispute resolution, it said, adding that the government also emphasised its commitment to improve the ease of doing business.

'Relentless harassment'

The government’s sresponse comes days after Wintrack Inc announced on X that it would close its India import-export operations from October 1, alleging “relentless harassment” by Chennai Customs officials.

Prawin Ganeshan, founder of the Chennai-based company, shared a video on X detailing the timeline of events from January 2025 leading up to his decision to close the business. He alleged that Chennai Customs withheld his shipments and only released them after their demands for bribes were fulfilled. Further, he alleged that his company suffered retaliatory actions after they had exposed bribery demands on two separate occasions this year, ultimately leading to its collapse.

Also read: Chennai Customs officer yanks passenger’s thali; Madras HC calls it intolerable

In a widely circulated social media post, he remarked, “In India, there’s no ease of business, only corruption at every level of governance.”

He further claimed that his wife’s firm was coerced into paying over ₹2.1 lakh in bribes for a shipment valued at USD 6,993, adding that officials even proposed a 10 per cent “discount” during the negotiation process.

Chennai customs response

Meanwhile, Chennai Customs has refuted the "serious and false allegations" made by Wintrack Inc, asserting that the company has an “established pattern” of posting unverified claims of corruption and bribery on social media, only to remove them after official rebuttals are issued.

Presenting what it described as "documented facts," the department stated that a recent inspection revealed misclassification of goods—a discrepancy reportedly acknowledged by the importer.

According to officials, eight boxes containing USB charging cables were discovered during a physical examination, none of which were declared in the Bill of Entry, commercial invoice, or packing list. This, they said, constitutes a clear breach of Section 111 of the Customs Act, 1962.

Chennai Customs further stated that the imported goods included built-in rechargeable batteries, for which the importer failed to provide Extended Producer Responsibility (EPR) certification despite repeated requests. The department accused Wintrack Inc of exhibiting a “calculated pattern” of making corruption allegations when subjected to legitimate scrutiny, followed by deleting social media posts once violations were documented.

'Selected narrative'

It described Wintrack’s claims as a “selective narrative” aimed at pressuring officials to release shipments without following proper procedures. In a post on X, Chennai Customs asserted, “Every action taken was legally mandated, procedurally proper, and based on documented violations discovered during examination.”

Also read: How India stifles textile and apparel sector with GST and Customs Duty

Further, the department stated, “Chennai Customs will not be deterred by false allegations. We remain dedicated to lawful, transparent, and professional enforcement of regulations that safeguard public health, consumer safety, and environmental standards.”

The Central Board of Indirect Taxes and Customs (CBIC) also addressed the issue on X, clarifying that the case involves misdeclaration and misclassification by the importer.

'Truly dismaying'

Political and corporate circles reacted to the incident. Describing the environment of corruption as “truly dismaying”, Congress MP Shashi Tharoor said, “Most companies simply comply as part of the ‘price of doing business.’ It doesn’t have to be this way.”

Mohandas Pai, chairman of Aarin Capital and former CFO of Infosys, also raised concerns, tagging finance minister Nirmala Sitharaman and Prime Minister Narendra Modi publicly appealing to them to intervene.