Ministry of Commerce has blacklisted Sunil Mittal-led Bharti Airtel for failing to meet export obligations
The Commerce Ministry has taken major action on Bharti Airtel. In the case of non-fulfillment of import-export conditions, the Commerce Ministry has blacklisted telecom company Airtel.
- Commerce Ministry takes action on Bharti Airtel.
- Company did not meet import-export conditions.
- Ministry blacklisted the company while taking action.
Bharti Airtel was still struggling with the dues of paying adjusted gross revenue (AGR) that a new problem has come in front of it. The Commerce Ministry has taken action on Bharti Airtel. The ministry has blacklisted this company headed by Sunil Mittal in terms of tax exemption on imports.
Why action taken on Bharti Airtel
This action has been taken on Airtel due to non-fulfillment of export related conditions. According to reports, the Directorate General of Foreign Trade, which comes under the Ministry of Commerce, has put Airtel in the ‘Dinned Entry List’. Bharti Airtel has not fulfilled export obligations under the Export Promotion Capital Goods Scheme (EPCG).
Import license of companies which are put on the denied entry list is over. The company will not be able to get any kind of import benefit or license under the Directorate General of Foreign Trade.
Significantly, after the arrival of Jio, the condition of Airtel is already bad due to strong competition and the obligation to give thousands of crores of rupees to the government on AGR.
What are the terms and conditions
Under the EPCG scheme, a company is allowed to import capital goods at zero customs duty to produce goods and services for export. The company acquiring this facility has to export six times the amount of tax saved in this way. But Airtel did not fulfill this condition.
What did airtel say
On this move of the Ministry of Commerce, Airtel said that it has itself applied to close all the previous licenses and no such license has been taken after April 2018. Company sources said, ‘Airtel has not taken any such license since April 2018. The company itself has applied to close all the old licenses.
The Bombay Stock Exchange has also sought clarification from the company in this regard, although the stock exchange has not received any reply from the company yet.
