Wintrack quits India, cites Chennai customs harassment

Wintrack Inc., a global trading company founded by entrepreneur Prawin Ganeshan, has announced it will halt all import and export operations in India, citing harassment and corruption by Chennai Customs officials.

The company said the move is about survival, not profit.

“From October 1, 2025, our company will cease import/export activities in India,” Wintrack said in a statement shared on X. “For the past 45 days, Chennai Customs officials have relentlessly harassed us. After exposing their bribery practices twice this year, they retaliated, effectively crippling our operations and destroying our business in India. We deeply thank everyone who has supported us during these difficult times.”

The company’s Twitter bio now states: “Exposed bribery @ Chennai Customs, Faced revenge. Lost business. Corruption won this battle. They can destroy our business, not our voice.”

The controversy arose over a shipment of personal massagers, which Ganeshan said was blocked because customs questioned why charging cables were not declared separately, even though they have always been part of the product kit. He also claimed officials demanded compliance with EPR (Extended Producer Responsibility) and LMPC (Legal Metrology) rules selectively to delay his shipment.

Ganeshan accused a senior official of issuing threats.

In response, Chennai Customs called the allegations “serious and false,” stating the goods were misclassified under the Customs Tariff and that eight boxes of USB charging cables were undeclared, violating Section 111 of the Customs Act, 1962.

The department added that EPR registration was mandatory for the rechargeable massagers. It said the importer submitted incorrect documentation and made legally untenable claims of MSME, finished product, and low battery capacity exemptions. Customs also alleged that Ganeshan tried to intimidate officers during a September 30 meeting with threats of media exposure and self-harm. The department maintained that no bribes were ever demanded and all actions were “legally mandated, procedurally proper, and based on documented violations.”

The Central Board of Indirect Taxes & Customs (CBIC) clarified that the matter concerned misdeclaration and misclassification. It stated that Chennai Customs had already responded on this aspect and that the importer had subsequently shared certain names and screenshots on Twitter. The board added that the matter had been noted, all facts would be duly examined, and necessary action would be taken as warranted under the law.

Ganeshan, however, named three officers and alleged they received bribes to clear his wife’s shipment. He claimed, “Faceless Assessment Officer at Mumbai received Rs 50,000. When we negotiated the bribe through our staff in person… they offered a discount of 10%.”

The incident drew political attention, with Congress MP Shashi Tharoor describing it as truly dismaying. He noted that corruption remains rampant across the system and that most companies comply as part of the “price of doing business,” adding that it need not be this way and must not continue if the country is to grow and prosper.

Investor Mohandas Pai addressed Finance Minister Nirmala Sitharaman on X: “Madame… this is not acceptable. You have failed to stamp out systemic corruption in our ports. Please stop this. You are our FM and our PM Narendra Modi had promised us corruption-free rule. You have also failed to stop TAX TERRORISM.”

Chennai customs agents and importers said the issue reflects broader challenges at Indian ports. A senior agent explained that for ordinary traders, the complex web of regulations—BIS, LMPC, EPR—can cause delays of days or even weeks, while for customs officials, the same rules serve as mandatory safeguards. He added that if traders raise concerns about inefficiency or corruption, Customs often portrays them as violators attempting to dodge the law, and noted that the line between regulatory vigilance and harassment is frequently blurred.