AJAY BAGARIA Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition under Section 482 of the Code of Criminal Procedure, 1973 ( Crpc ) seeks the quashing of Criminal Complaint titled Chief Enforcement officer v. Ratan Exports and Industries and Ors pending in the Court of the learned Additional Chief Metropolitan Magistrate ( ACMM ), Delhi insofar as it concerns the Petitioner.

(2.) THE complaint in question was filed by the Respondent No. 2 Enforcement directorate through its Chief Enforcement Officer, Shri R. K. Rawal, Respondent no. 2 herein, under Section 56 of the Foreign Exchange Regulation Act, 1973 ( FERA ) read with Sections 49 (3) and 49 (4) of the Foreign Exchange Management act, 1999 ( FEMA ) against the Company M/s. Ratan Exports and Industries Limited ( REIL ) and six others. The Petitioner here was arrayed as Accused No. 4 in the complaint.

(3.) THE complaint stated that by a letter dated 26th May, 1997 Reserve Bank of india ( RBI ) had informed the Enforcement Directorate that export proceeds to the tune of Rs. 22. 95 crores were pending realization in the account of REIL. Earlier, for the purpose of investigation, a directive had been issued by the rbi to REIL on 19th September 1996 under Section 33 (2) FERA calling for the details of outstanding exports. By a letter dated 23rd October, 1996 REIL informed RBI that during the period 1992-96 the Directors of the REIL were Shri ratan Lal Bagaria, Shri Bijoy Bagaria, Shri Ajay Bagaria, Shri Mohan Churiwala, dr. S. Rangana and Smt. Vidya Bagaria. Summons under Section 40 FERA was issued to the REIL on 17th September 1997. Shri Palash Ganguly, Director of REIL appeared and made a statement on 17th October 1997 before the Enforcement directorate. Shri Palash Ganguly informed that: