In response to the "smuggled" luxurious yacht allegations leveled by the Mumbai Customs, in an affidavit filed in Mumbai High Court, the Anil Dhirubhai Ambani Group (ADAG) has claimed that the yacht was not imported by the group. It was further asserted that since the yacht bears a foreign flag, it can sail in international and Indian waters.

The Customs department had contended it had seized the luxury yacht in question - 'Tian' - in February, as the possession of the yacht was a case of tax evasion. It is being said that the opulent ship has probably been gifted by Anil Ambani to his wife.

In his statement, S R Vichare - Assistant Commissioner of Customs - said: "The imported luxury yacht 'Tian' was imported in contravention of Section 111(m) of the Customs Act, hence is liable for confiscation."

While ADAG vehemently denied the contention, the hearing of the petition challenging seizure of the yacht - filed by the ADAG associate company, Ammolite Holdings - has been put off till Friday.

Nonetheless, an ADAG spokesman said: "The yacht was duly and validly brought into Indian waters after the necessary approvals granted by the Customs department. The allegations leveled by the department are totally baseless and will be refuted in an affidavit by the group to be filed in the Honorable High Court."