DRI case: Delhi High Court dismisses summons against Hero Motocorp chairman Pawan Munjal

The Delhi High Court quashed a summons issued against Hero Motocorp Chairman Pawan Munjal on Wednesday, July 24, in a foreign currency case registered by the Directorate of Revenue Intelligence (DRI).

The court's decision came in response to Munjal's plea seeking to quash and set aside a trial court's order from July 1, 2023, summoning him for alleged offences under the Customs Act.

“The petition is allowed. Summoning order is quashed,” Justice Manoj Kumar Ohri pronounced the order.

Hero Motocorp stocks price was trading in red, down 1.10% at 5450.70 on July 24, at 1:41 pm, on BSE. 

In November last year, the high court held proceedings related to the foreign currency case lodged against Munjal by the DRI. The court noted in its interim order that Munjal had been exonerated by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on the same set of facts, a detail not disclosed before the trial court. The petitioner successfully made out a case for interim protection, leading to the stay of the July 1, 2023, order and all related proceedings before the Additional Chief Metropolitan Magistrate (ACMM).

DRI case

The DRI filed a prosecution complaint in 2022, accusing Munjal, a third-party service provider company called Salt Experience and Management Private Limited (SEMPL), and Amit Bali, Hemant Dahiya, K R Raman, and others of “carrying, attempting to export, and illicit export of prohibited items, that is, foreign currency.”

Munjal's counsel argued that the trial court's order was passed mechanically without providing reasons. In contrast, the DRI's counsel contended that the agency was not a party to the proceedings before the CESTAT and, therefore, had no knowledge of or obligation to disclose the March 2022 order.

Additionally, the Enforcement Directorate (ED) had registered a case under various sections of the Prevention of Money Laundering Act (PMLA). The case primarily stems from the DRI's chargesheet, filed under section 135 of the Customs Act, concerning the evasion of duty or prohibitions.

The ED has alleged that SEMPL “illegally exported foreign currency equivalent to about ₹54 crore to various countries from 2014-2015 to 2018-2019, which was ultimately used for personal expenses of P K Munjal.” 

SEMPL reportedly obtained foreign exchange worth about ₹14 crore in the names of its officials and employees, exceeding the annual permissible limit of USD 2.5 lakh in various financial years. The agency also claimed that SEMPL issued foreign exchange and travel forex cards in the names of other employees who did not travel abroad.

(With Inputs from PTI)