Hewlett Packard's (HP) India unit was ordered to pay US$386 million as ordered by the country's Customs Department. This was for the penalty of alleged duty evasion of the computer manufacturer.

The investigation of the case started in 2008 by the Directorate of Revenue Intelligence. The same agency alleged that HPI had underpaid duties with the customs department upon importing spare parts and other products into the country.

The Commissioner of Customs Bangalore issued in April of last year an order on the HPI products. The notice was for affirmation of specific duties and penalties against the computer manufacturer and its officials.

The HPI spokesperson said that the company is not agreeable to the commissioner's order neither does it agree with the DRI's investigation findings.

Before the issuance of the show cause notices, HP stated that the company has deposited roughly US$16 million with DRI. The computer manufacturer has also agreed to post a provisional bond for DRI to not hold their products to prevent interference with business transactions in the company.

HP has deposited around US$70 million with the Indian authorities.