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 exchange.

Munjal’s petition challenging the complaint was allowed by the Supreme Court, which also set aside 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 action was based on facts previously adjudicated by the Customs, Excise and Service Tax Tribunal (CESTAT), which had concluded that Munjal was not the beneficial owner of the foreign currency and could not be held liable. . Taking these factors into account, the court found that continued criminal proceedings were unjustified.

The Supreme Court noted that neither the Supreme Court nor its Division Bench had interfered with the CESTAT decision after careful consideration of the facts of the case.

“In view of the specific facts regarding the petitioner’s non-ownership of the foreign currency and the finality of the decision of the CESTAT, continuation of the present complaint would be an abuse of the process of law,” the apex court’s July 24 order said and made . publicly on Monday.

The DRI had accused Munjal and others of trying to export banned items, namely foreign currency, in a chargesheet in 2022. The Supreme Court had earlier stayed the trial court’s proceedings against Munjal in November last year, noting that he was acquitted by CESTAT.

Munjal’s counsel argued that the trial court’s decision lacked proper reasoning, was based on stale facts after the CESTAT decision, and that the petitioner deserved interim relief. However, the DRI maintained that the complaint was valid under the Customs Act after a thorough investigation.

The Enforcement Directorate (ED) further pursued the case under various sections of the Prevention of Money Laundering Act (PMLA), alleging that SEMPL illegally exported foreign currency worth Rs 54 crore, which was used for Munjal’s personal expenses. It was also alleged that SEMPL was issuing foreign currency beyond permissible limits in the name of its employees and others.

(With input from agencies.)