SUMAN SEHGAL Vs. UNION OF INDIA

JUDGEMENT

(1.) The writ petitioner in these proceedings under Article 226 of the Constitution claims directions to the respondents, for the release of his passport. When he preferred this writ petition, he had been issued with a summons under Sections 37(1) (3) of the Foreign Exchange Management Act, 1999 (hereinafter called "FEMA") read with Section 131 of the Income Tax Act, 1961 (hereafter called the "IT Act") on 6.11.2006 and 11.11.2006 and asked to produce, inter alia, his passport and two other documents.

(2.) The facts required for determination of the points involved in this case are largely undisputed. The petitioner claims to be a Consultant of long standing, having advised various companies such as Godfrey Phillips India Ltd., India Tobacco Company Ltd., Tata Tea etc. for the export of cigarettes, tobacco, Tea and other commodities to Russia. It is averred that he set up his own business sometime in 1992, for export of such commodities. The Petitioner claims to have been appointed as Consultant to a Russian Company, called ENERGIA which specializes in construction of Hydro and Thermal Power Stations. It is stated that he continues in the capacity as such a Consultant. In October, 2005, the Media and various Newspapers carried reports relating to the Volcker Report, which had named several persons as recipients of favours, for facilitating in the Iraqi "Oil for Food" Programme. The petitioner"s son Mr. Andleeb Sehgal and his concern, Hamdan Export were also named.

(3.) The second respondents (hereinafter refereed to as "Directorate") caused two notices to be pasted on 6.11.2005, one outside his house and the other outside the house of Andleeb Sehgal, requiring them to appear in its Offices. The same day apparently raids were conducted in the office of the petitioner and his son. It is claimed that Andleeb Sehgal was required, to and appeared on several subsequent occasions before the Directorate in connection with investigations into the Volcker Report.