Seven executives of Samsung India have petitioned an Indian court to revoke personal penalties amounting to $81 million, imposed as part of a broader $601 million tax demand by the Indian government. The dispute centers on allegations that Samsung misclassified imports of mobile tower equipment between 2018 and 2021 to evade tariffs. While Samsung itself is challenging the overall tax demand before an appeals tribunal, its executives argue that no grave offence was committed and that the penalties are unjustified.
According to legal documents reviewed by Reuters, Samsung India logistics executive Ravi Chadha claimed the authorities issued the penalties hastily—within just a few days of receiving the company’s detailed responses. In his Mumbai High Court filing, Chadha called the process rushed and said the matter involves only the interpretation of tariff codes. He is personally facing a fine of ₹950 million ($11.1 million), which he described as “egregiously exorbitant,” arguing it would take over a century to repay on his current salary.
The legal challenge extends to six other Samsung executives, including senior figures from the company’s network, finance, and tax divisions. All are contesting the tax authority’s decision on identical legal grounds, arguing that the penalties are disproportionate for salaried employees and do not reflect any intentional wrongdoing. The executives’ lawyer, Sriram Sridharan, who also represents Samsung in the tax appeals tribunal, declined to comment on the matter.
Both Samsung India and the Indian tax authority have yet to respond to Reuters’ inquiries regarding the case. The legal fight highlights the growing tensions between multinational corporations and Indian tax authorities over complex import classifications, and the personal liabilities that senior executives may face in such disputes.