SHC grants bail to importer in solar panels over-invoicing, money laundering case

The Sindh High Court has granted bail to an importer in a Rs631 million solar panel over-invoicing case.

Abdul Aziz was booked by the customs authorities alleging that he had over-valued solar panels imported from China during the period 2018-19 and 2022-23 under which the value of Chinese- origin solar panels was below $0.22 per watt, but applicant declared them between $0.23 per watt and $0.44 per watt to over-invoice the imports by Rs631.9 million.

The prosecution alleged that the entire payment was remitted to a single company in Dubai, namely Ocular General Trading LLC, and these solar panels were then sold in the local market at a far lower price than the declared value; therefore, it was evident that purpose of over-valuing the solar panels was to launder money abroad.

A single bench headed by Justice Adnan Iqbal Chaudhry, after hearing the arguments of the customs and the applicant’s counsel, observed that it appears that for the Chinese-origin solar panels imported by the applicant during 2018-2019, the alleged declared value of $0.23 per watt to $0.44 per watt was still less than the valuation ruling that existed up till 2017.

The court observed that the charge sheet does not specify the good declarations of imports made during 2022-23 under which solar panels were allegedly declared in excess of the valuation ruling of $0.20 per watt (dated 23-05-2022).

It further observed that applicant counsel submitted that solar panels were imported by the applicant after September 4, 2023 so as to attract the rate of $0.14 per watt under the valuation ruling.

The court observed that the allegation that the solar panels imported by the applicant were over-valued for the purposes of routing money abroad has yet to be proved. It further said the solar panels in question have not been seized thus far so as to assess their real value nor has the investigation officer has been able to obtain a verification of the invoices from the shipper.

It also observed that the status of the company in Dubai to whom the payment was remitted has also not been ascertained thus far. The court said that admittedly the applicant paid the customs duties and taxes over the declared value of the goods, and since the allegation is not of under-invoicing, but of over-invoicing, it is not a case of evasion of customs duties and taxes.

The court observed that allegations in the challan as to the over-valuation of imports made by the applicant company as to its financials, and as to the role of the applicant as a front man of the co-accused, are all questions that require further inquiry.

It said that the custody of the applicant is no longer required for investigation, and therefore keeping him behind bars at this stage serves no purpose. The court granted bail to the importer with a surety of Rs1 million along with PR bond in like amount to the satisfaction of the trial court.