Sun Pharmaceutical Industries Limited and its subsidiary, Sun Pharma Laboratories Limited, have been fined over ₹76 crore by customs authorities for alleged misclassification of imported goods to avoid paying appropriate duties.
The order, issued by the Office of the Commissioner of Customs (Imports), Mumbai, cites violations of the Customs Act, 1962. Sun Pharma faces a redemption fine of ₹27 lakh and a penalty of ₹1.25 crore, while its subsidiary has been fined ₹9 crore and penalized ₹47.89 crore. Additionally, senior executives Nilesh Gandhi, Satish C. Jha, and Rajesh Wadhawa have each been fined ₹25 lakh.
As reported by medicaldialogues, the penalties stem from the reclassification of products from HSN 1302 (Extracts) to HSN 2106 (Food Supplements), leading to a shortfall in duty payments. The customs authority invoked provisions under sections 28(4), 114A, 112(a), and 125 of the Customs Act, which address duty recovery, intentional evasion, and improper importation.
In response, Sun Pharma stated that the penalties would not materially impact its financial performance or operations. The company is reviewing the order and has reiterated its commitment to compliance with regulations, assuring stakeholders that its long-term growth remains unaffected.