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[Cites 4, Cited by 1]

Delhi High Court - Orders

Rajesh Dhanda vs Union Of India (Through Ministry Of ... on 24 January, 2022

Author: Mukta Gupta

Bench: Mukta Gupta

                              $~22
                              *      IN THE HIGH COURT OF DELHI AT NEW DELHI
                              +      W.P.(CRL) 1588/2021
                                     CRL.M.A. 13339/2021 (directions)

                                     RAJESH DHANDA                                      ..... Petitioner
                                                     Represented by:   Mr. Dayan Krishnan, Sr. Adv., Mr.
                                                                       Sanjay Abbott, Mr. Arshdeep Singh
                                                                       Khurana, Mr. Aditya Chopra, Mr.
                                                                       Sanjeevi Sheshadhri and Mr. Harsh
                                                                       Srivastava

                                                          versus

                                     UNION OF INDIA (THROUGH MINISTRY OF
                                     CORPORATE AFFAIRS) & ORS.                 ..... Respondents
                                                   Represented by: Mr Amit Mahajan, CGSC
                                                                   with    Ms      Vidhi    Jain,
                                                                   Advocates for R-1 to R-3.
                                                                   Mr. Zoheb Hossain, Sr.
                                                                   Standing Counsel for the IT
                                                                   Dept., Mr. Vipul Agarwal, Jr.
                                                                   Standing     Counsel,     Mr.
                                                                   Kaushal Kait and Ms. Tulika
                                                                   Gupta, Advocates for R-4 &
                                                                   R-7.
                                                                   Mr. Satish Aggarwala Sr.
                                                                   SPP with Mr. Jasneet Jolly
                                                                   Advocates for Respondent
                                                                   No.5
                                                                   Mr. Mohit Mathur, Sr. Adv.
                                                                   along with Mr. Tushar
                                                                   Agarwal, Adv, Mr. Sumit
                                                                   Misra,     Advocates       for
                                                                   Intervenor Mr. Sudhir Gulati.
                                                                   Mr Prakarsh Airan, Advocate
                                                                   for Mr Anupam S. Sharma,


Signature Not Verified        W.P.(CRL.) 1588/2021                                               Page 1 of 6
Digitally Signed By:JUSTICE
MUKTA GUPTA
Signing Date:27.01.2022
13:36:18
                                                                             SPP-CBI.

                                     CORAM:
                                     HON'BLE MS. JUSTICE MUKTA GUPTA
                                             ORDER

% 24.01.2022 The hearing has been conducted through video conferencing. CRL.M.A. 18744/2021 (exemption) CRL.M.A. 18745/2021 (exemption) CRL.M.A. 18748/2021 (exemption)

1. Allowed, subject to all just exceptions.

2. Applications are disposed of.

W.P.(CRL) 1588/2021 & CRL.M.A. 13339/2021 (directions)

3. By this petition, the petitioner has sought various directions to the respondents including proper investigation under Section 5 read with Section 3 of the PMLA and Section 83 of the CGST Act by a Special Investigating Team (SIT) etc. on the complaint filed by the petitioner dated 29th July, 2021.

4. Learned counsel for the petitioner refers to the counter affidavit filed by the respondent no.7, the Income Tax Department wherein affidavit notes that the Income Tax Department has initiated its investigation and taken series of actions against Vikas Chaudhary, Sudhir Gulati and number of companies. According to the affidavit, during the course of search and survey operations incriminating documents/digital evidences relating to over invoiced exports, trade-base money laundering, fictitious purchases, fraudulent availing of export incentives, duty drawback and sharing them with other exporters were found. It was stated Signature Not Verified W.P.(CRL.) 1588/2021 Page 2 of 6 Digitally Signed By:JUSTICE MUKTA GUPTA Signing Date:27.01.2022 13:36:18 that one Avtar Singh Kocchar was found to be running a hawala racket and in his statement, he admitted that he helped in getting a telegraphic transfer to one of the entities of Vikas Chaudhary, who had made exports to various companies out of which the department was able to find out evidences for few companies which also involved money laundering. Further, one Manoj Garg was also found to be involved in the international hawala transactions as was evident from the documents seized during the search at the premise of Vikas Chaudhary. Further, export incentives have been fraudulently earned by the company controlled by Vikas Chaudhary and bogus purchases were identified to be made in the three entities, namely, M/s Aashtha Apparels Pvt. Ltd., M/s JBB Apparels Pvt. Ltd. and M/s JBN Apparels Pvt. Ltd. Digital evidences seized showed a draft agreement for an offshore company in the name of M/s Centurion International Limited registered in the Jebel Ali Free Zone, Dubai of which Vikas Chaudhary bought 10% share for ₹1,65,00,000 AED or INR 30 crores as per the trust deed from one Amit Agarwal in the name of his daughter. Thus, huge income tax evasion was also found.

5. Further, investigation from the search and seizure of Sudhir Gulati revealed that he owns and operates a group of companies involved in the export of readymade garments. The search and seizure carried out on the business and residential premises of Sudhir Gulati, Avtar Singh Kochhar and others on 6th February, 2019, also revealed over invoiced exports, trade-based money laundering, fictitious purchases, fraudulently availing of export incentives, etc.

6. Learned counsel appearing on behalf of the Income Tax Departments states that assessment proceedings are going on against Signature Not Verified W.P.(CRL.) 1588/2021 Page 3 of 6 Digitally Signed By:JUSTICE MUKTA GUPTA Signing Date:27.01.2022 13:36:18 Vikas Chaudhary and other co-accused and any further action will be taken pursuant to the outcome of the assessment proceedings.

7. Affidavit has also been filed on behalf of the respondent no.6, that is, by the Directorate General of GST Intelligence, according to which an investigation was carried out and it was revealed that Sudhir Gulati had availed most of the ITC from the companies owned and controlled by Rakesh Kumar Goel, who had availed of inadmissible and fraudulent ITC. After investigation was carried out four accused were arrested, namely, Vikas Chaudhary, Vikas Chandan and accomplice of Vikas Chaudhary, Sudhir Gulati and Rakesh Kumar Goel.

8. An affidavit has been filed even on behalf of the respondent no.4, DRI, according to which it initiated its investigation on 11 th September, 2019 into a case of 'undue availment of duty drawback' and other export incentives by resorting to over valuation by the following export companies owned and controlled by Mr Vikas Chaudhary and his relatives, and his associates, namely, M/s Nautilus Metal Craft Pvt. Ltd., M/s Aashtha Apparels Pvt. Ltd., M/s JBB Apparels Pvt. Ltd. and M/s JBN Apparels Pvt. Ltd.

9. It is thus evident that in the complaints referred in the present petition, investigations by the Income Tax Department, DDGI and DRI have been conducted, however, as regards SFIO there is no investigation carried out. As per the affidavit filed on behalf of the SFIO since under Sections 210, 212 and 213 of the Companies Act, the Central Government has to direct investigation into the affairs of the company and since no such direction has been received, the SFIO cannot investigate the affairs of the company. The Central Government, which has been impleaded as Signature Not Verified W.P.(CRL.) 1588/2021 Page 4 of 6 Digitally Signed By:JUSTICE MUKTA GUPTA Signing Date:27.01.2022 13:36:18 respondent no.1, Ministry of Corporate Affairs will treat the present petition as a representation and consider whether any direction is required to be issued to the SFIO for investigating the offences in terms of Sections 210 and 212 of the Companies Act and a report in this regard be filed before the next date of hearing.

10. No affidavit has been filed by the respondent no.5, Enforcement Directorate. Learned counsel appearing on behalf of the ED submits that the Enforcement Directorate is inquiring into the matter and at this stage it would not be proper for the Enforcement Directorate to file an affidavit and he be permitted to file a Status Report in sealed cover.

11. Status Report in sealed cover in respect of the inquiry being carried out by the ED be placed on the record of this Court before the next date of hearing.

12. Learned counsel for the petitioner reserves his arguments in respect of CBI as learned counsel for the CBI is not present being unwell. He further states that though action has been taken by the GST, however, no attachments have been done.

13. List on 30th March, 2022.

14. The Court Master is requested to give the soft copy of the paper book to the learned counsels for the parties so that their files are paginated according to the court file.

CRL.M.A. 18743/2021 (to institute inquiry against petitioner) CRL.M.A. 18747/2021 (for intervention on behalf of Mr Sudhir Gulati)

15. Notice. Learned counsels for the petitioners and the respondents accept notice. Reply affidavit, if any, be filed by the petitioner and the Signature Not Verified W.P.(CRL.) 1588/2021 Page 5 of 6 Digitally Signed By:JUSTICE MUKTA GUPTA Signing Date:27.01.2022 13:36:18 respondents to this application before the next date of hearing.

16. List these applications on 30th March, 2022.

17. Order be uploaded on the website of this Court.

MUKTA GUPTA, J JANUARY 24, 2022/MK Signature Not Verified W.P.(CRL.) 1588/2021 Page 6 of 6 Digitally Signed By:JUSTICE MUKTA GUPTA Signing Date:27.01.2022 13:36:18