Nepal | May 29, 2020

DRI seeks Rs 1.95bn from Varun Beverages

• FAKE VAT BILL SCAM

Himalayan News Service
Share Now:

Kathmandu, December 19

The Department of Revenue Investigation (DRI) has filed a case against Varun Beverages (Nepal) Pvt Ltd — a multinational company — on allegations of issuing fake value added tax (VAT) bills.

Filing a case at Kathmandu District Court today against seven former and present directors of the company, the department has sought nearly Rs 1.95 billion in principal amount and penalties.

The DRI is seeking to recover Rs 649.60 million in principal amount, along with a fine that is double the principal amount or nearly Rs 1.30 billion, from the company.

The department has also urged the court to consider jailing the directors of the company for up to three years, as per a provision in the Revenue Leakage (Investigation and Control) Act-1995.

The defendants in the case filed by DRI today include Amit Gupta, Ravikanta Jaipuriya, Rohit Kohli, Prabin Kumar Agrawal, Vinod Kumar Singh and Ashok Kumar and the company itself.

The case filed at the district court today was a culmination of a four-month-long investigation on Varun Beverages (Nepal), according to Dirgha Raj Mainali, director general of DRI.

According to him, the department had initiated the probe based on a tip-off that the company was engaged in VAT bill scam that amounted to millions.

While the department had until now seemingly only targeted small companies, Mainali said, “Now, we are expanding our probe into large sized firms too, including other multinational companies.”

The case has come to light at a time when the government has been struggling to meet its VAT and income tax collection targets. The VAT and income tax shortfall in the first four months of fiscal 2019-20 stood at around Rs 21 billion.

In the period between mid-July and mid-November, the Inland Revenue Department (IRD) collected revenue amounting to Rs 104 billion, which was 83.2 per cent of the set target. Of the IRD’s annual revenue collection target of Rs 506 billion set for the current fiscal, the target for the first four months was Rs 125 billion.

As per section 4 (A) and (B) of Revenue Leakage (Investigation and Control) Act-1995, the DRI has already seized the bank guarantee of Rs 1.60 billion of Varun Beverages before the case was filed at the Kathmandu District Court, informed Mainali.

During the investigation, the DRI discovered that the company had been issuing fake VAT bills while conducting business with its business partners between fiscal years 2013-14 and 2018-19. The department has said that the company was able to evade VAT amount worth Rs 253.40 million and Rs 396.15 million in income tax and dividend during the five years.
As per Mainali, the Rs 1.95 billion that the department is trying to recover is by far the largest amount in terms of VAT bill scam.

The DRI registered 28 cases against 76 individuals related to VAT and income tax scams and sought recovery of Rs 10.29 billion in principal amount and fines in the first four months of the current fiscal.

The department has till date filed cases against 515 individuals on VAT and income tax scams and sought nearly Rs 37 billion in principal and penalties along with three-year imprisonment of the accused.


A version of this article appears in print on December 20, 2019 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Finance Minister begins budget presentation for FY 2020-21

KATHMANDU: Finance Minister Yubaraj Khatiwada has begun the presentation of budget for the fiscal year 2020-21 at the Federal Parliament. The budget is being presented amid a joint meeting of the House of Representatives (HoR) and the National Assembly (NA). As the coronavirus continues to spr Read More...

Larry Kramer, playwright and AIDS activist, dies at 84

NEW YORK: Larry Kramer, the playwright whose angry voice and pen raised theatergoers’ consciousness about AIDS and roused thousands to militant protests in the early years of the epidemic, has died at 84. Bill Goldstein, a writer who was working on a biography of Kramer, confirmed the news to T Read More...

Cases registered against two lockdown violators in Udayapur

GAIGHAT: Police have registered cases against two youths who were arrested on Tuesday for violating lockdown in Udayapur district. The arrested have been identified as Surendra Gupta and Rakesh Sah, both in their 30s. Lalpatta-based police post arrested the duo after they were found bringing t Read More...

Looking in, looking out: world emerges from lockdown with mixed feelings

As much of the world begins to emerge from lockdown, people are looking back at time spent cut off from friends, family and colleagues by the coronavirus and forward to what happens next. Reuters has captured some of those reflections along with portraits from across Africa and the Middle East of Read More...

Legendary lyricist-poet Ratna Shamsher Thapa no more

KATHMANDU: Legendary lyricist and poet Ratna Shamsher Thapa has passed away. He breathed his last at 12:30 pm on May 28 at Norvic Hospital. He was 81. He succumbed to pneumonia, according to a close family member Shiva Acharya. He informed that Thapa was taken to the hospital in the evening of Ma Read More...

Police recover two muzzle-loader guns in Kohalpur

NEPALGUNJ: Armed Police Force personnel recovered two abandoned muzzle-loader guns in Kohalpur Municipality-8 in Banke district, today. Deputy Superintendent of Police (DSP) Shyam Kumar Karki said that they recovered the weapons along with ammunition, shrapnel shells, and other items under Sikta Read More...

Stray Kids to return with GO LIVE on June 17

KATHMANDU: Here is a piece of good news that Stays have been waiting for — Stray Kids have just announced their comeback. Soompi reports that on May 28, Stray Kids revealed a GO LIVE trailer for their return. The video shares that their first album GO LIVE is coming out on June 17. T Read More...