The Delhi High Court has quashed a summons issued against Hero Motocorp Chairman Pawan Munjal in a foreign currency case registered by the Directorate of Revenue Intelligence (DRI). The court’s decision, delivered on July 24, 2024, comes in response to Munjal’s plea to set aside a trial court’s order from July 1, 2023, which had summoned him for alleged offences under the Customs Act.
Justice Manoj Kumar Ohri, while pronouncing the order, stated, “The petition is allowed. Summoning order is quashed.” This ruling comes after Munjal argued that the trial court’s order was passed without proper reasoning. His counsel also highlighted that Munjal had been exonerated by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on the same set of facts, which was not disclosed before the trial court.
Background of the Case
The DRI had filed a prosecution complaint in 2022, accusing Munjal and others, including a third-party service provider company called Salt Experience and Management Private Limited (SEMPL), of carrying, attempting to export, and illicit export of prohibited items, namely foreign currency. The Enforcement Directorate (ED) also registered a case under various sections of the Prevention of Money Laundering Act (PMLA), based on the DRI’s chargesheet concerning the evasion of duty or prohibitions.
Stock Market Impact
Following the court’s decision, Hero Motocorp’s stock price was trading in the red, down 1.10% at 5450.70 on the BSE as of 1:41 pm on July 24.
Noteworthy Details
- CESTAT Exoneration: Munjal had been exonerated by CESTAT on the same facts presented in the DRI’s case, a fact not disclosed before the trial court.
- DRI’s Complaint: The DRI’s complaint included allegations against Munjal and others for illicitly exporting foreign currency worth approximately ₹54 crore for personal expenses.
- ED’s Allegations: The ED claimed that SEMPL illegally exported foreign currency and exceeded the annual permissible limit of USD 2.5 lakh through its officials and employees, issuing foreign exchange and travel forex cards in their names.
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