New Delhi: In a turn of events, a big sigh of relief has come for Hero MotoCorp Chairman Pawan Kant Munjal from the Delhi High Court (HC), which has stayed the proceedings relating to foreign currency registered against Munjal by the Directorate of Revenue Intelligence (DRI).
The HC, in an interim order of November 3, noted that Munjal has been 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 has been able to make out a case for interim protection.
As per the order accessed by ETAuto, the HC, while hearing the petition of Munjal for quashing of a criminal complaint titled as ‘Directorate of Revenue Intelligence (DRI) against Salt Experience and Management Private Limited and Others’, allowed Munjal’s prayer for interim protection from arrest and granted Interim stay upon the on-going proceeding before the Patiala House Court.
Hero MotoCorp Chairman had filed a petition for quashing of a criminal complaint filed by DRI against him before the Additional Chief Metropolitan Magistrate, Patiala House Court.
Earlier, the Additional Chief Metropolitan Magistrate had issued a summoning order to Munjal in the complaint for the alleged commission of the offences punishable under Sections 135(1)(a), 135(1)(b) and 135(1)(c) read with 135(1)(i)(A) of the Customs Act, 1962 related to evasion of custom duties.
“The Hon’ble Delhi High Court observed that Customs, Excise and Service Tax Appellate Tribunal (CESTAT) had already exonerated Pawan Kant in another case having substantially similar facts and allegations and the decision of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) was not disclosed before obtaining summoning orders against Pawan Kant from Patiala House Court,” as per Yashasvi Virendra, Advocate, Supreme Court of India.
“The Hon’ble High Court observed that Pawan Kant Munjal was able to make a case for interim protection from arrest which was awarded along with a grant of interim stay on any further proceeding against Pawan Kant in respect of the complaint pending before Additional Chief Metropolitan Magistrate-01 Patiala House Court,” the Advocate said.
It said in a statement that a “third party service provider” company, identified as Salt Experience and Management Pvt. LTd. (SEMPL), “illegally exported foreign currency equivalent to about INR 54 crore to various countries during the period 2014-2015 to 2018-2019 which was ultimately used for personal expenses of P K Munjal.”
Sunil Munjal had stepped down from the position as Joint Managing Director in 2016 itself, the company said in a statement on Tuesday. It also stated that the family settlement agreement has been in effect from 2016 and the stepping down of Sunil Munjal was part of the regulatory disclosure of 2016.
