Delhi High Court stays DRI proceedings against Hero MotoCorp Chairman Pawan Kant Munjal

The Delhi High Court recently stayed all trial court proceedings initiated by the Directorate of Revenue Intelligence (DRI) against Hero Motocorp Chairman Pawan Kant Munjal [Pawan Kant v Directorate of Revenue Intelligence].

Justice Saurabh Banerjee passed an interim order on November 3 noting that the summoning order by the Court of Additional Chief Metropolitan Magistrate (ACMM) was passed without giving any reasons.

The High Court further recorded that Munjal had been exonerated by the Customs Excise & Service Tax Appellate Tribunal (CESTAT) and this was not disclosed to the trial court.

"The petitioner herein has been able to make out a case for grant of interim protection. Accordingly, the operation of the impugned order dated 01.07.2023 passed by the Ld Additional Chief Metropolitan Magistrate - 01, Patiala House Courts, New Delhi in Ct Cases No 2012/2022 and all proceedings emanating therefrom pending before the ACMM-01, shall remain stayed qua the petitioner, till the next date of hearing,” the Court ordered.

According to a PTI report, the DRI filed a prosecution complaint last year against Munjal, a third party service provider company called SEMPL and individuals identified as Amit Bali, Hemant Dahiya, K R Raman and some others alleging that they were involved in an “attempt to export and illicit export of prohibited items, that is, foreign currency”.

They were booked under Sections 135(1)(a), 135(1)(b) and 135(1)(c) read with 135(1)(i)(A) of the Customs Act, 1962.

Based on the DRI’s case, the Enforcement Directorate also booked Munjal and others under various provisions of the Prevention of Money Laundering Act (PMLA).

Munjal’s lawyers told the Court that the trial court passed the summoning order in a mechanical manner without appreciating the fact that DRI concealed the judgement of the CESTAT whereby Munjal was exonerated and the same set of facts form the part of the present complaint.

DRI’s Senior Standing Counsel told the Court that it was not a party to the proceedings before the CESTAT and, therefore, there was no occasion for it to be aware of the same.

The Bench, however, held that the matter requires consideration and passed an interim order staying the proceedings.

Senior Advocates Mukul Rohatgi, Sandeep Sethi and Dayan Krishnan along with Advocates Rishi Aggarwal, Parminder Singh, Abhay Agnihotri, Vikram Choudhary, Ankit and S Seth appeared for Munjal.

DRI was represented through Senior Standing Counsel Satish Aggarwala and Advocate Gagan Vaswant. 

[Read Order]