Wintrack Inc., a Tamil Nadu-based global trading company specialising in cross-border e-commerce deliveries, has announced the complete cessation of its Indian import-export business as of October 1, 2025.

The company, founded by entrepreneur Prawin Ganeshan, accused Chennai Customs officials of persistent harassment, corruption, and retaliatory actions, allegations denied by both the customs office and central agencies.

The standoff, which has drawn national political attention and triggered a probe by the Union Ministry of Finance, highlights the challenges faced by small businesses at Indian ports and customs.

Wintrack’s Allegations: Harassment, Bribery, and Retaliation

In a series of statements on X, Wintrack alleged that for 45 days, Chennai Customs had “relentlessly harassed” the company following two instances earlier in the year where the firm exposed bribery. Wintrack claimed that after refusing to pay bribes on several occasions, the authorities used their discretionary powers to block, delay, or reclassify shipments, crippling the company’s business.

At the heart of the dispute was a batch of personal massagers, products that, according to Ganeshan, customarily include charging cables. Customs officials, for the first time this year, allegedly demanded a separate declaration for these cables, leading to significant demurrages and delays.

Further, extended producer responsibility (EPR) and legal metrology (LMPC) compliance certificates were requested, which Ganeshan described as “routine” requirements previously not strictly enforced, but now “selectively weaponised” against his firm.

Customs Respond: Denial of Malpractice, Citing Compliance Issues

Chennai Customs responded publicly, describing the allegations as “serious and false” and offering a detailed rebuttal point by point. Officials asserted that during inspection, eight boxes of USB charging cables were found undeclared in the Bill of Entry, packing list, and commercial invoice, explicitly violating Section 111 of the Customs Act, 1962.

The department also underlined that EPR registration was mandatory for products with built-in rechargeable batteries, and that Wintrack had failed to submit valid documentation despite repeated queries.

Customs argued that the importer’s claims of MSME or product exemptions were not supported by law. The department also accused Ganeshan of intimidating officers, and insisted that no bribes were requested or accepted at any stage.

Central Government Orders Probe, Political Reactions Follow

The Union Ministry of Finance, which governs the Central Board of Indirect Taxes and Customs (CBIC), swiftly intervened after Wintrack’s accusations gained traction on social media. The Department of Revenue has deputed a senior officer to conduct a “fair, transparent, and fact-based inquiry,” promising hearings with all parties concerned and a thorough examination of all documentation.

The ministry stressed its commitment to transparency and the “ease of doing business,” pointing to reforms like faceless customs assessment, the Taxpayer Charter, and new appellate bodies as efforts to improve regulatory fairness.

The situation has drawn commentary from prominent personalities including Congress MP Shashi Tharoor and technology investor Mohandas Pai, both of whom criticised the alleged persistence of port corruption and called for systemic change.

Agents and importers familiar with Chennai port claim the Wintrack dispute reflects longstanding frustration among traders, who say the multitude of regulations, from BIS and LMPC to EPR requirements, often mean days or weeks of costly delays.

While customs officials defend these as essential safeguards for consumer safety and environmental protection, traders contend that the way these rules are invoked can sometimes blur the line between justified vigilance and harassment.

The Logical Indian’s Perspective

The Wintrack-Chennai Customs standoff underscores the ongoing tension between regulatory compliance and fair business practice in India.

While robust checks are critical for consumer protection and environmental standards, it is equally imperative to ensure that such power is not misused, nor genuine enterprise stifled by arbitrary discretion or corruption.

This episode demands honest introspection, stronger institutional accountability, and reform in customs procedures to encourage entrepreneurship while upholding the law.