High Court Grants Stay in Money Laundering Case Against Hero MotoCorp Chairman

The High Court has issued a stay on legal proceedings involving Pawan Kant Munjal, Chairman of Hero MotoCorp, amidst an ongoing money laundering investigation led by the Enforcement Directorate (ED). Justice Saurabh Banerjee responded to Munjal’s petition against the ED case by serving a notice to the agency, allowing them time to present their response.

The court highlighted a recent stay order under the Customs Act, revealing that the petitioner had been exonerated from charges related to Customs duty, excise duty, and service tax by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). Consequently, the court imposed a stay on actions under the Prevention of Money Laundering Act (PMLA), emphasizing that this stay exclusively pertains to the petitioner. The ED retains the freedom to proceed with their investigation in accordance with the law.

Also Read: Landmark Decision: High Court Allows Ritwik Datta’s Foreign Travel Amid CBI’s FCRA Case

In the preceding year, the Directorate of Revenue Intelligence (DRI) lodged a complaint against Munjal’s company, alleging illicit attempts to export restricted items, including foreign currency. The DRI’s investigation branch leveled accusations under Section 135 of the Customs Act before a Delhi court. Subsequently, the ED registered a case under various sections of the Prevention of Money Laundering Act (PMLA).

On November 3, the High Court intervened by staying proceedings in the DRI case. Senior counsel Mukul Rohatgi, representing the petitioner, argued on Friday that the stay order on the DRI case, pertaining to Customs offenses, should consequently preclude any advancement in the money laundering case. The upcoming hearing for the case is slated for March 21.