Delhi HC quashes summons issued to Hero Group chairman Pawan Munjal in DRI proceedings

The high court, in its interim order, had noted that Munjal was exonerated by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on the same set of facts and this was not disclosed before the trial court and that the petitioner had successfully made out a case for interim protection.

The Delhi High Court on Wednesday quashed a summons issued to Hero Motocorp chairman Pawan Kant Munjal in a case registered by the Directorate of Revenue Intelligence (DRI) relating to foreign currency.

The high court passed the order on Munjal's plea seeking quashing and setting aside of a trial court's July 1, 2023 order by which the summons was issued against him for alleged offences under the Customs Act.

"The petition is allowed. Summoning order is quashed," Justice Manoj Kumar Ohri said while pronouncing the order.

In November last year, the high court had stayed the proceedings relating to foreign currency lodged against Munjal by the DRI.

The high court, in its interim order, had noted that Munjal was exonerated by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on the same set of facts and this was not disclosed before the trial court and that the petitioner had successfully made out a case for interim protection.

It had stayed the operation of the July 1, 2023 order passed by an additional chief metropolitan magistrate here and all proceedings emanating therefrom pending before the ACMM with respect to the petitioner.

The DRI had filed a prosecution complaint in 2022 for "carrying, attempting to export and illicit export of prohibited items, that is, foreign currency" against Munjal, a third-party service provider company called SEMPL and individuals identified as Amit Bali, Hemant Dahiya, K R Raman and some others.

Besides the July last year order, the petitioner had also sought quashing of the complaint pending before the ACMM.

Munjal's counsel had contended that the trial court's order was passed mechanically, without giving any reasons.

Regarding the non-disclosure of the March 2022 order, the DRI's counsel had submitted that since it was not a party to the proceedings before the CESTAT, there was no occasion for either being aware or withholding any information with respect to that order.

The Enforcement Directorate (ED) had also registered a case under various sections of the Prevention of Money Laundering Act (PMLA). The case mainly stems from the chargesheet of the DRI, an investigation arm of the Central Board of Indirect Taxes and Customs (CBIC), filed before a Delhi court under section 135 (evasion of duty or prohibitions) of the Customs Act.

The ED has alleged that Salt Experience and Management Private Limited (SEMPL) "illegally exported foreign currency equivalent to about Rs 54 crore to various countries during the period from 2014-2015 to 2018-2019, which was ultimately used for personal expenses of P K Munjal".

SEMPL, it has alleged, got foreign exchange to the tune of about Rs 14 crore issued in the name of its officials and employees, such as Hemant Dahiya, Mudit Aggarwal, Amit Makker, Gautam Kumar, Vikram Bajaj and Ketan Kakkar, over and above the annual permissible limit of USD 2.5 lakh in various financial years.

SEMPL has also drawn foreign exchange and travel forex cards in huge amounts in the name of other employees who did not even travel abroad, the agency has claimed.