Delhi High Court Quashes DRI Summons and Complaint in Foreign Currency Case

The Delhi High Court in CRL.M.C. 7919/2023 & CRL.M.A. 29532/2023 quashed the criminal complaint and the summoning order issued against Mr. Pawan Kant Munjal, Executive Chairman of Hero MotoCorp, by the Directorate of Revenue Intelligence (DRI). The court held that the proceedings were based on a set of facts already conclusively adjudicated in favour of the petitioner, and continuing with the prosecution would amount to an abuse of process of law.

Background of the Case

Petitioner: Pawan Kant Munjal, Executive Chairman, Hero MotoCorp
Complaint Filed By: Directorate of Revenue Intelligence (DRI)
Subject: Alleged violation involving undeclared foreign currency seized from an aide during an international business trip in 2018
Key Event: Mr. Amit Bali, assistant of SEMPL (event coordinator), was found carrying undeclared currency amounting to approx. ₹81 lakh
DRI Allegation: The currency belonged to Mr. Munjal and was exported illegally in contravention of the Customs Act and FEMA

Petitioner’s Defense

Mr. Munjal denied ownership or knowledge of the foreign currency.
Claimed he carried his personal expense cards and had no financial control over SEMPL or its employees.
Argued that the Customs Adjudication Authority and CESTAT had exonerated him on merits, holding that he was not the “beneficial owner” of the currency.
Cited Clause 15.9.2 of the Customs Manual and the Supreme Court ruling in Radhe Shyam Kejriwal, which bars continuation of prosecution post exoneration on merits.

Key Judicial Findings

Adjudication Proceedings Finalized in Petitioner’s Favour
- The Additional Commissioner of Customs dropped the charges in 2019.
- The Commissioner (Appeals) overturned this decision, but the CESTAT (Customs Tribunal) reversed the appellate order on 28.03.2022.
- The CESTAT decision was upheld by the Delhi High Court (05.10.2023) and Supreme Court (26.04.2024), finalising the exoneration.
Exoneration on Merits, Not Technical Grounds
- The Court observed that the decision was based on factual analysis, not procedural lapses.
- Evidence showed that SEMPL employees arranged currency on their own, and Mr. Munjal had no beneficial ownership or control over the funds.
Continuation of Complaint is Abuse of Law
- The criminal complaint dated 06.10.2022 and summoning order dated 01.07.2023 were founded on the same set of facts already adjudicated.
- In light of the conclusive findings, the Court held the prosecution untenable.

Final Order

“The petition is allowed and the complaint case being Ct. Case No. 2012/2022 is quashed. As a necessary sequitur, the summoning order dated 01.07.2023 is set aside.”
– Justice Manoj Kumar Ohri, Delhi High Court

Legal Significance

This ruling reinforces the legal doctrine that criminal proceedings cannot be sustained when:

The facts have already been judicially settled, and
The accused has been exonerated on merits, not merely procedural grounds.
It reaffirms protections against double jeopardy, upholds judicial discipline, and limits overreach in regulatory prosecutions.

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Source: Delhi High Court

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