A group of seven executives from Samsung India has filed a petition with a court seeking to overturn penalties totaling $81 million (approximately Rs. 692 crore) that are part of New Delhi’s broader tax claim of $601 million (around Rs. 5,135 crore). The executives argue, through legal documents and sources, that they did not commit any serious offenses.
In January, the Indian tax authority alleged that Samsung and its executives had evaded tariffs by misclassifying imports of essential mobile tower equipment between 2018 and 2021. The company is contesting this allegation before a tax appeals tribunal, where it maintains that its disclosures were accurate and denies any wrongdoing.
Of the total tax demand directed at Samsung’s India operations, $520 million (approximately Rs. 4,443 crore) is attributed to the company itself, while the penalties for employees amounting to $81 million (around Rs. 692 crore) are claimed based on their purported “knowing and intentional” involvement in the misclassification activities.
In a court filing made in Mumbai, which was not publicly accessible but reviewed by Reuters, Ravi Chadha, Samsung India’s logistics executive, criticized the speed at which the penalties were issued. He noted the tax authority imposed the fines just two to three days after receiving a comprehensive response from Samsung detailing their stance.
Chadha stated in his filing, “This timeframe is utterly insufficient to conduct the requisite in-depth study,” highlighting that he faces a fine of 950 million rupees (about $11.1 million). He emphasized that the matter pertains only to the interpretation of tariff codes and contended that no severe offense occurred.
Both Samsung India and Chadha have not responded to requests for comments from Reuters. Similarly, there has been no immediate response from the Indian tax authority regarding the allegations.
Public court records indicate that the other executives challenging the tax authority’s decision include Sung Beam Hong, the vice president of the network division, Sheetal Jain, a finance general manager, and Nikhil Aggarwal, Samsung’s general manager for indirect taxes.
The legal representative for the seven executives, Sriram Sridharan of the law firm Lakshmikumaran & Sridharan, has not yet responded to inquiries. His firm is also acting on behalf of Samsung in the ongoing appeal before the tax tribunal.
A source with knowledge of the lawsuits noted that the arguments presented in the petitions by the other executives are similar to those made by Chadha.
Within his filing, Chadha expressed concern that the “egregiously exorbitant” penalty would be unbearable for any salaried employee, asserting that it would take him over a century to repay the amount, given his income level.
© Thomson Reuters 2025
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