The Delhi High Court, on Wednesday, nullified the summons issued to Pawan Kant Munjal, the chairman of Hero Motocorp, in connection with a Directorate of Revenue Intelligence (DRI) investigation into foreign currency irregularities. The decision came as a result of Munjal’s appeal to overturn a July 1, 2023, trial court order which had initially summoned him under alleged violations of the Customs Act.
Justice Manoj Kumar Ohri, presiding over the case, pronounced the quashing of the summoning order, citing the appellant’s prior exoneration by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on the same facts—a key piece of information that had not been presented in the trial court. This prior exoneration played a pivotal role in the High Court’s decision to provide Munjal interim protection last November, halting all related proceedings.
The case against Munjal was filed by the DRI in 2022, accusing him along with a third-party service provider, SEMPL, and several individuals of illegal activities involving the export of foreign currency. The allegations suggested that these actions were part of an operation to illicitly export prohibited items, including substantial amounts of foreign currency.
Additionally, the Enforcement Directorate (ED) has also implicated SEMPL under the Prevention of Money Laundering Act (PMLA), stemming from the DRI’s charges. The ED’s case alleges that from 2014 to 2019, SEMPL illegally exported foreign currency valued at approximately Rs 54 crore, which was reportedly used for Munjal’s personal expenses. The agency also claimed that SEMPL obtained foreign exchange exceeding regulatory limits for several officials and employees, some of whom did not travel abroad as claimed.
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The defence for Munjal argued that the trial court’s original order to summon him was issued mechanically without sufficient reasoning, questioning the procedural integrity of the decision. In contrast, the DRI’s counsel defended their position by stating their non-involvement in the CESTAT proceedings meant they were unaware of the previous order that exonerated Munjal.
