Hewlett-Packard's (HP) Indian operation has been charged with tax evasion and has been sent a show-cause notice by the Bangalore unit of Directorate of Revenue Intelligence (DRI).

The charges are that the company has evaded custom duty to the tune of Rs. 1,450 crore. While nothing has been proved till now, if it does then this will be the single largest case of evasion that has been brought to light by DRI.

DRI has said that HP has always devalued the products that it used to bring from its overseas markets. These include computers, laptops, notebooks and desktops

But that is not the end of troubles for the California-based computer maker. It is already facing charges of giving bribery in Europe sometime in 2003, while making a contract.

In another development, HP has submitted Rs. 79.25 crore voluntarily with the government and out of this Rs. 35 crore was paid last week itself.

Talking to a private newspaper, FE, a senior official of the company said that the company has followed all the regulations of India and everything is very transparent. He added that HP India is fully co-operating with DRI.