Hero Electric under tax lens for allegedly evading customs duty

Hero Electric responded by saying, "We are compliant as required by the law and the issue referred here is more than 3.5 years old. Given the difference in policy and interpretation several businesses in the sector of engineering and consumer goods have got successfully reprieved from the court a year back on the same interpretation. DRI being a responsible authority continues to seek information across sectors on the same and we are sharing the same appropriately."

The government has already stopped the flow of subsidies to Hero Electric under the FAME scheme for not meeting the domestic value addition criteria.

Responding to CNBC-TV18's query, Hero Electric said the company is compliant with the law -- adding that it has been granted a stay order and no duties have been paid. "No duties have been paid- it is already clear from our earlier statement. As all other companies, we have been granted stay order".