Delhi High Court Quashes Case Against Hero MotoCorp Chairman

The Delhi High Court has dismissed proceedings against Hero MotoCorp chairman Pawan Kant Munjal over charges by the DRI concerning foreign currency. The court noted that the case was previously resolved by the CESTAT, asserting that continuing the prosecution would be an abuse of the law.

The Delhi High Court has dismissed the proceedings against Hero MotoCorp chairman Pawan Kant Munjal in a case initiated by the Directorate of Revenue Intelligence (DRI) regarding foreign currency.

Munjal’s petition challenging the complaint was approved by the high court, which also overturned a trial court’s July 1, 2023 order that had summoned him in the DRI’s case.

Justice Manoj Kumar Ohri pointed out that the DRI’s actions were based on facts previously adjudicated by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), which had concluded that Munjal was not the beneficial owner of the foreign currency and could not be held liable. Given these factors, the court found the continuation of criminal proceedings unjustifiable.

The high court noted that neither the Supreme Court nor its division bench had interfered with the CESTAT order after thorough consideration of the case facts.

“Considering the specific facts regarding the petitioner’s non-ownership of the foreign currency and the finality of the CESTAT’s determination, the continuation of the subject complaint would be an abuse of the process of law,” stated the high court order dated July 24 and made public on Monday.

The DRI had accused Munjal and others of attempting to export prohibited items, namely foreign currency, in a 2022 prosecution complaint. The high court had previously stayed the trial court’s proceedings against Munjal in November last year, noting his exoneration by the CESTAT.

Munjal’s counsel argued that the trial court’s order lacked proper justification, was based on stale facts post-CESTAT order, and the petitioner was deserving of interim protection. The DRI, however, maintained the complaint was valid under the Customs Act after a thorough investigation.

The Enforcement Directorate (ED) further pursued the matter under various sections of the Prevention of Money Laundering Act (PMLA), alleging SEMPL illegally exported foreign currency amounting to Rs 54 crore, used for Munjal’s personal expenses. It was also claimed SEMPL issued foreign exchange above permitted limits in the names of its employees and others.