Delhi High Court - Orders
Uday Jayant Desai vs Union Of India & Ors on 26 July, 2022
Author: Yashwant Varma
Bench: Yashwant Varma
$~9
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 10540/2022
UDAY JAYANT DESAI ..... Petitioner
Through: Mr.Siddharth Agarwal, Sr. Adv. with
Ms.Neeha Nagpal, Mr.Malak M
Bhatt, Ms. Sowjhanya Shankaran and
Mr.Vishvendra Tomar, Advs.
versus
UNION OF INDIA & ORS. ..... Respondents
Through: Mr.Ajay Digpaul, CGSC with
Mr.Kamal R. Digpaul and Ms.Swati
Khawtra, Advs and Mr. Pinky, Adv.
for R-1 and 2.
Mr. Akash Meena, G.P.
Mr.Zoheb Hossain, Adv. for ED with
Mr.Vivek Gurnani, Adv.
Mr.Ripu Daman Bhardwaj, Adv. for
CBI/R-3.
Mr. Naman, Adv. for R-6 and R-10.
Mr. Sarfaraz Khan, Adv. for R-9
Mr. Niti Jain, Adv. for R-11
Ms.Bindu Das, Adv. for R-12.
Mr.Arun Aggarwal, Ms.Srishty Jaura,
Advs. for R-14.
Mr.Santosh Kumar Rout and
Mr.Abhishek Chakraborty, Advs. for
R-17 / Central Bank of India.
CORAM:
HON'BLE MR. JUSTICE YASHWANT VARMA
ORDER
% 26.07.2022 Signature Not Verified Digitally Signed By:NEHA Signing Date:26.07.2022 17:41:27 W.P.(C) 10540/2022 Notice.
Bearing in mind the issues which stand raised in the writ petition including the challenge to the circular issued by the Union respondents, let the noticed respondents file their replies within a period of six weeks.
List again on 18.01.2023.
CM APPL. 30439/2022(Interim direction) This application has been preferred by the petitioner for being granted interim permission to travel in terms of the particulars which are set forth therein:-
"b. pass an order permitting the petitioner to travel abroad from 01.08.2022 till 15.09.2022 and suspend the Look Out Circular issued against the Petitioner on such terms and conditions as this Hon‟ble Court may deem fit and necessary"
The travel is sought in the backdrop of the medical condition of the petitioner as well as of his desire to meet his two sisters staying abroad and in light of his advancing years.
The Court notes from the material placed on the record that the petitioner has been accorded bail on medical grounds by the Supreme Court.
The petitioner was one of the Key Management Personnel in M/s. Frost Infrastructure and Energy Ltd. The various cases and proceedings which have been initiated by the respondents are set forth in a form of a chart which was placed for the consideration of the Court by the petitioner himself. Those details are extracted hereinbelow:-
Proceedings Allegations Status
CBI [Lucknow] Fraudulent conduct Petitioner was The
FIR of merchanting trade summoned to investigation is
No.RC0062019A0015 dt. (MT) business by join investigation pending as on
Signature Not Verified
Digitally Signed
By:NEHA
Signing Date:26.07.2022
17:41:27
04.11.2019 u/S. 120B, Frost Infrastructure in October 2021, date, and no
420, 468, 471, 477-A & Energy Ltd. which he duly Chargesheet
Complainant (FIEL) and its complied with. appears to have
Union Bank of India directors, including He has not been been filed.
Petitioner, causing summoned for
Ref: FIR @ Pg.282, wrongful loss to investigation
Petition lender banks to the thereafter.
tune of Rs.68 crores
ED Registered pursuant Petitioner was The
ECIR to CBI FIR dt. summoned to investigation is
04.11.2019 join investigation pending as on
once, which he date, and no
duly complied Complaint
with. He has not appears to have
been summoned been filed.
further.
CBI [Lucknow] Fraudulent conduct Petitioner was The
FIR RC0062021A0004 of MT business by summoned to investigation is
dt. 23.03.2021 u/S. 120B, FIEL and its join investigation pending as on
420, 468, 471, 477-A and directors, including in January 2022, date, and no
S. 13(2) r/w S. 13(1)(d) Petitioner, causing which he duly Chargesheet
PC Act wrongful loss to complied with. appears to have
Complainant lender banks to the He has not been been filed.
Indian Overseas Bank tune of Rs.138.39 summoned
crores further.
Ref:
FIR @ Pg. 309. Petition
CBI [New Delhi] Fraudulent conduct Petitioner has not The
FIR of MT business by been called for investigation is
No.RCBD1/2020/E/0001 Frost International investigation pending as on
dt. 19.01.2020 u/S. 120B Ltd. (FIL) and its even once as on date, and no
r/w 420, 467, 468, 471 directors, guarantors, date. Chargesheet
and S. 13(2) r/w S. etc. including appears to have
13(1)(d), PC Act Petitioner, and been filed.
Complainant cheating lender banks
Bank of India to the tune of
Rs.3592 crores
Ref: FIR @ Pg. 212,
Petition
Also see: Para 20, Reply
filed by CBI on
25.07.2020
ED Registered pursuant Petitioner‟s Prosecution
ECIR to CBI FIR Dt. statement under Complaint
Signature Not Verified
Digitally Signed
By:NEHA
Signing Date:26.07.2022
17:41:27
No.LKZO/01/2020/2778 19.01.2020 S. 50, PMLA was under S. 45,
dt. 07.02.2020 recorded while he PMLA was filed
was in judicial on 22.04.2021.
custody in the The Petitioner
SFIO case has not been
[March 2021]. named as
He was further Accused.
summoned to
join investigation
in September
2021, which he
duly complied
with.
SFIO Loss of Rs.4041 Petitioner was Petitioner was
Case No.SC 577/2020 Crores to banks and summoned to arrested on
[Spl. Court, Kanpur] u/S. siphoning of Rs.845 join investigation 19.03.2020.
36(c) r/w S. 447, 185, Crores attributed to on 30.09.2019, The
186, 447, 448 r/w 447, FIL for fraudulent 19.11.2019. investigation Companies Act, 2013 and conduct of MT 10.01.2020, has been S. 211 r/w S. 628, business 25.01.2020, completed, and Companies Act, 1956 30.01.2020 which a Complaint Allegations against he duly complied was filed on Registered 69 accused, the Petitioner and with and also 15.05.2020. including Rotomac group other Directors was submitted The Petitioner of companies, Frost of utilization of the documents as was granted International Ltd., and corporate identity to sought by the regular bail by Petitioner (Accused FIL to rotate funds Agency. the Hon‟ble No.43) under the garb of Supreme Court MT, by discounting on 10.08.2021.
Ref: of letters of credit
Chart @ Pg. 395, and earning interest
Petition on the same and
SFIO Complaint @ Pg. manipulating
394, Petition accounting books to
Bail Order @ Pg. 462, show fake MT
Petition receivables to the
tune of Rs.3537.74
Crores to obtain the
credit facilities.
SFIO Allegation of loss Petitioner has not The
Investigation initiated caused to banks by been called for investigation is pursuant to MCA order fraudulent conduct of investigation pending as on Signature Not Verified Digitally Signed By:NEHA Signing Date:26.07.2022 17:41:27 dated 29.05.2020 against MT business and even once as on date, and no FIEL, Globiz and OOIL rotation of funds to date. Complaint (3 group companies of earn interest appears to have FIL) arbitrage. been filed.
CBI [New Delhi] Payment of bribe by Petitioner joined The FIR No.2172021A0001 public servant to investigation Chargesheet in dt. 12.01.2021 u/S. 7, 7A, inspector in charge of while he was in this case has 8, 12, PC Act and S. investigation of judicial custody been filed and 120B various cases, in the SFIO case. Petitioner has including of FIL. not been named Ref: FIR @ Pg. 4, The allegation was as Accused. Additional Affidavit that such bribes were filed on 25.07.2022 paid on behalf of the Petitioner and Mr. Sujay Desai for FIL Prima facie, the Court notes that there are serious allegations of huge defalcation of funds and loss having been caused to Financial Institutions to the tune of over Rs. 3000 Crores. The Court bears in mind that the 2017 Circular which holds the field does not restrict the issuance of a Look Out Circular merely to a situation where a criminal offence may have been committed but also extends to situations where the issuance of the Look Out Circular may be warranted bearing in mind the economic interest of the country as well as larger public interest. The nature of proceedings in which the petitioner stands arraigned, the sheer magnitude of the losses caused to the financial institutions as well as the multiple investigations which are ongoing leaves the Court convinced at this stage that the issuance of the Look Out Circular is clearly justified and that the permission if granted would be detrimental to the economic interests of the country and in any case, larger public interest would justify the restraint on travel as imposed.
Consequently, the prayer for interim permission is refused at this Signature Not Verified Digitally Signed By:NEHA Signing Date:26.07.2022 17:41:27 stage.
Application stands disposed of.
Dasti.
YASHWANT VARMA, J.
JULY 26, 2022/neha Signature Not Verified Digitally Signed By:NEHA Signing Date:26.07.2022 17:41:27