VIKAS CHAUDHARY Vs. UNION OF INDIA

JUDGEMENT

(1.) The present petition under Article 226 of the Constitution of India seeks quashing of the Look Out Circular (hereinafter referred to as "LOC ")issued against the petitioner by respondent No. 1/Ministry of Home Affairs at the instance of respondent No. 3/Income Tax Department.

(2.) The Petitioner is a director in two companies, namely M/s Nautilus Metal Crafts Pvt. Ltd., and M/s Aastha Apparels Pvt. Ltd. having their registered offices in Delhi. It is claimed that the two companies are in the business of exporting garments to the USA, Europe, South America, the UK and the UAE, and based on their performance are the recipients of various certificates and awards from the Government including a "Two Star Export House Status " and an "Authorized Economic Operator T-1 Certificate ".

(3.) On the basis of a Warrant of Authorization (WoA) issued on 05/02/2019 u/s 132(1) of the Income Tax Act against a third party, namely 'The Kochar Group ' comprising inter alia of Shri Avtar Singh Kochar, Shri Gagandeep Singh Kochar, Shri Hari Singh Kochar and M/s HL Impex (P) Ltd, a search action was conducted at the petitioner 's residence from 06/02/2019 to 09/02/2019. During this search, besides some loose papers, a hard disk, a digital video recorder, a key to locker no. 150F, Bank of India, Punjabi Bagh New Delhi was also seized and as per procedure, the statements of both the petitioner and his wife were recorded. A WoA was thereafter, issued on 12.02.2019 against the petitioner and his wife for a search of the aforesaid locker, which led to the seizure of jewellery worth about Rs.1,00,67,181 found in the locker. It is at this stage, that upon a request made by the respondent no.3 to the respondent no.1 on 25/02/2019, the impugned LOC came to be issued against the petitioner.