Mumbai customs has issued six show-cause notices to VSP and others seeking recovery of customs duty to the tune of Rs 121 crore.
According to official sources, the show-cause notices have alleged that customs duty of over Rs 121 crore was evaded by VSP and the transferees of the advance licences against exports of pig iron.
These parties had, in connivance with some officers of the VSP, sought imports of inputs that were not used in exports and sought to avail of higher duty benefits through misdeclarations.
A batch of writ petition filed before the Supreme Court, which opened the case were converted as a public interest litigation.
The apex court directed the customs authority to adjudicate the rest of the case in a time-bound period.
Sources say some officials working with the steel plant as well as the directorate general of foreign trade (DGFT) and a group of people based in Delhi, acting at the behest of some political heavyweights, were the main beneficiaries in the case.
These parties, reportedly close associates of a former Congress leader's son, were favoured by VSP officers and the directorate general of foreign trade (DGFT) in defrauding the exchequer while seeking duty free imports to the tune of several hundred crores.
The case had resulted in the suspension of two top officials of the DGFT
