The Directorate-General of Foreign Trade (DGFT) has moved to add a penalty for violation of Foreign Trade (Development and Regulation) Act 1992 by Haldia Petrochemicals Ltd (HPL).

The Customs authority has already demanded Rs. 2,600 crore (inclusive of interest) from HPL for the violation of the advance licence rules during the period between 2010 and 2013.

According to sources, action demanding the penalty would be initiated this week.

The Policy Relaxation Committee of DGFT in April this year had asked the regional authority to initiate action against HPL for violation of the law in respect of sale of products manufactured through conversion of duty-free import of naphtha in the domestic market instead of exporting them.

Now the DGFT, which has discretionary powers for slapping such claims for penalty, has decided to move ahead. DGFT also has adjudicating as well as appellate authorities over such claims of penalty under the relevant law.

Earlier, the Directorate of Revenue Intelligence had registered a case against HPL for the alleged violations.

The DGFT move would burden financially stressed HPL. It has admitted violation of 82 advance authorisations but sought an extended timeframe for paying of the Customs demanded amount.