The Delhi High Court on Wednesday has quashed the summons issued to Hero Motocorp chairman Pawan Kant Munjal in a case filed by the Directorate of Revenue Intelligence concerning foreign currency violations.
Justice Manoj Kumar Ohri delivered the ruling on Munjal’s plea, seeking to nullify the trial court’s July 1, 2023 order, which summoned him for alleged Customs Act violations. Justice Ohri stated that, “The petition is allowed. Summoning order is quashed.”
Last November, the high court had temporarily halted proceedings related to the foreign currency case against Munjal. The court noted that Munjal had been cleared by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on the same facts, which was not disclosed to the trial court, justifying interim protection for Munjal.
The high court had also paused the enforcement of the trial court’s July 1, 2023 order and all related proceedings against Munjal.
The DRI had filed a prosecution complaint in 2022 accusing Munjal and others, including SEMPL and individuals like Amit Bali, Hemant Dahiya, and KR Raman, of “carrying, attempting to export, and illicitly exporting prohibited items,” specifically foreign currency.
Munjal’s legal team argued that the trial court’s summons was issued without proper justification. Meanwhile, the DRI’s counsel explained that the agency was unaware of the CESTAT order due to not being involved in those proceedings.
The Enforcement Directorate also filed a case under the Prevention of Money Laundering Act (PMLA), stemming from the DRI’s chargesheet. The ED alleged that SEMPL illegally exported foreign currency worth approximately Rs 54 crore between 2014 & 2019 for Munjal’s personal expenses.
The ED claimed SEMPL obtained around Rs 14 crore in foreign exchange for its officials and employees, surpassing the annual permissible limit of USD 2.5 lakh.
Additionally, SEMPL allegedly acquired large amounts of foreign exchange and travel forex cards in the names of employees who did not travel abroad.
