'Misdeclaration, misclassification': CBIC responds after TN importer accuses Chennai Customs of Rs 2 lakh bribe

India’s apex customs body has responded to explosive corruption allegations against Chennai Customs officials after Tamil Nadu-based importer Wintrack Inc. publicly accused them of demanding bribes to release shipments.

The Central Board of Indirect Taxes and Customs (CBIC) said the issue stems from “misdeclaration and misclassification” by the importer and confirmed that the matter is under review. “All facts will be duly examined, and necessary action, as warranted under the law, will be taken,” CBIC said, following posts by Wintrack founder Prawin Ganeshan on X.

The controversy centers on a shipment that customs officials flagged for non-compliance with EPR (Extended Producer Responsibility) rules. According to Chennai Customs, the consignment included undeclared USB charging cables with built-in batteries, which required special certification under India’s Battery Waste Management Rules, 2022.

Customs accused the importer of submitting “legally untenable” exemption claims and said a second shipment filed through a related entity—allegedly Ganeshan’s wife’s company—showed similar compliance gaps. The department also claimed Ganeshan used threats of media exposure and self-harm to pressurize officials during a meeting on September 30.

In its statement, Chennai Customs dismissed all bribery allegations, calling them “false” and “calculated attempts to pressure officers.” The department claimed that this was not the first time the importer had made—and deleted—such allegations on social media.

Ganeshan, however, doubled down, stating that a bribe of ₹2.1 lakh was paid to release a shipment valued at $6,993. He posted screenshots and alleged that customs officials exploit regulatory loopholes at will. “The law has loopholes, and officers exploit them at their discretion,” he wrote.

In protest, Wintrack Inc. announced it would cease all import-export operations in India from October 1, citing “45 days of unjustified harassment.” The firm has also threatened to expose other alleged bribe demands involving ports and BIS (Bureau of Indian Standards) evasion.