Piyoosh Kumar Goyal vs Uoi & Ors
2020 Latest Caselaw 543 Del

*    IN THE HIGH COURT OF DELHI AT NEW DELHI

%                                     Order Reserved On: 18.11.2019
                                     Order Pronounced On: 28.01.2020

+      CRL. M.A.36254/2019 in W.P. (CRL) No. 1766/2019

       PIYOOSH KUMAR GOYAL                              ..... Petitioner
                              Through:       Mr. Prashant Mehta, Mr.
                                             Ashutosh Shukla and Mr.
                                             Vasundhra Bhardwaj, Advs.
                              versus
       UNION OF INDIA & ORS.                            ..... Respondents
                              Through:       Mr. Sandeep Tyagi, Senior
                                             Panel       Counsel    for
                                             respondents no.1 & 4.
                                             Mr. Ajit Sharma and Ms.
                                             Adecba Mujahid, Senior
                                             Standing     Counsels, for
                                             respondents no. 2 & 3.

HON'BLE MR. JUSTICE BRIJESH SETHI
                                 ORDER

BRIJESH SETHI, J

CRL. M.A.36254/2019

1. The petitioner has filed present application u/s. 482 CrPC

seeking permission to travel abroad as well as stay of the lookout

circular issued against the petitioner for conducting business affairs.

It is submitted that petitioner's companies have been saddled with

heavy debtors who are not releasing payment to the tune of 1200

Crore. Petitioner has explored all possibilities to connect to

customers/ clients as well as investors through phone/ electronic

mode which have not borne the desired result. The matters in respect

of overdue have to be discussed in detail with the concerned parties

at Dubai viz-a-viz documents from both the sides to reconcile and

settle the disputes finally. Petitioner has been requested by its local

representative at Dubai office showing necessity of immediate

settlement of the outstanding issues directly with the customers as

well as lawyers if legal recourse is to be taken to realize the dues.

Petitioner is also required to meet investors to stream line finances

of the company.

2. It is submitted that lenders of two of the group companies i.e.

Worlds Window Impex India Pvt. Ltd. and Magnifico Minerals Pvt.

Ltd. have received a letter from Income Tax Authorities

(Investigation wing) through Department of Financial Services

following which most of the banks of consortium of lenders have

stopped debit operations in the accounts of these companies

bringing the operations with the suppliers and customers to a

standstill. Most of these customers and suppliers are located

overseas and they have started levying heavy penalties for non

fulfilment of the commitments made to them in the course of normal

business. It is submitted that presently these overseas customers owe

Worlds Window Impex India Pvt. Ltd. and Magnifico Minerals Pvt.

Ltd. Rs. 10,54,44,53,526/- and Rs.1,70,46,97,000/- respectively.

The said parties are insisting the petitioner to visit their office and

settle all pending issues for release of the said payment. Due to

issuance of LOC by the respondents, the petitioner herein is unable

to visit these companies, most of which are located in Dubai and for

the above said business meetings, the petitioner proposes to travel to

Dubai for a week between 12.10.2019 to 20.10.2019. It is submitted

that for the entire duration of the said business trip, the petitioner

would be staying in hotels and details of which shall be furnished to

the concerned department pursuant to the grant of permission to

travel abroad by this court. The petitioner has no intention to settle

abroad or to evade investigation and petitioner has attended the

office of the respondents as and when called and has been

cooperative during the entire investigation.

3. It is submitted that on account of the lookout notice/ circular

issued against the petitioner, the petitioner has been unable to travel

abroad for work for more than a year now since the raid was

conducted by the respondent which is causing huge negative impact

on the business of the petitioner. The petitioner is facing serious

business threat which is causing financial crisis to the petitioner's

business and petitioner is even unable to pay salaries to its staff. It is

submitted that no prejudice is likely to be caused to any of the

respondents if the operation of the impugned lookout circular is

stayed during the pendency of the present petition. It is, therefore,

prayed that petitioner be allowed to travel abroad to Dubai and the

respondents be restrained from interfering or objecting to travel of

the petitioner outside India till the pendency of the petition.

4. On the other hand, Ld. Counsel for the UOI, respondent no.1

has opposed the petition and submitted that based upon credible

evidence of large-scale tax evasion and other various serious

irregularities by various persons and entities of Words Window

Group (the "Group"), search and seizure under Section 132 and

surveys under Section 133A of the Income-tax Act, 1961 (the

"Act") were conducted on 25.06.2018 at various premises of main

entities/persons of the group. Such premises included residential

premises occupied by Shri Piyoosh Kumar Goyal, who has been a

promoter of the group and director in some companies of the group

including M/s Worlds Window Impex Pvt. Ltd. which is the

flagship company of the group.

5. It is further submitted by Ld. Counsel that evidence, gathered

from the residential premises of Piyoosh Kumar Goyal and office

premises of the group covered during search and survey, reveals that

over the years, the Group has been indulging in large-scale tax

evasion and other serious violations of provisions of the Act by

incorporating a web of companies and other entities, both within and

outside the country. The Group has also been obtaining large-scale

credit facilities (in different names) from the banks, based upon

fictitious/false transactions. In all these misdeeds Shri Piyoosh

Kumar Goyal has been found as the key person controlling/directing

affairs of the group within and outside India.

6. It is further submitted by Ld. Counsel that considering the

facts of the case, role of Shri Piyoosh Kumar Goyal as group

promoter and as main controlling person of the affairs of the Group

and his conduct, Look out Circular (LoC) was issued on 11 th

October 2018. The petitioner has been evasive throughout the

investigation. The role of the petitioner revealed from the material

gathered during investigation necessitates continuation of LoC. The

undertaking of the petitioner cannot be given any credence

considering his evasive response throughout the investigation.

7. It is next submitted by Ld. Counsel that all the above facts

suggest that if LoC is withdrawn pending investigation, Shri

Piyoosh Kumar Goyal may flee from the country making it

extremely difficult to secure his presence in the process of

investigation and other proceedings under the Act. It is, therefore,

prayed that petitioner may not be given permission to travel abroad.

8. A report in sealed cover was also submitted to the Court by

the Ld. Senior Counsel for UOI. He submitted that even he does not

know the contents of the same as it contains certain details of

investigation carried out by the respondents and in case these facts

are revealed, it will hamper the investigation and petitioner will be

able to erase and conceal the material evidence. He will come to

know about the investigation/ interrogation likely to be conducted

by the respondents and will be able to prepare himself for giving

evasive and ambiguous answers at the time of investigation.

9. I have considered the rival submissions. Though the sealed

cover was opened, but this Court is of the opinion that the details of

the report need not be revealed at this stage as it will hamper the

investigation. This Court is also not relying upon the report for the

purpose of deciding the application for the reason that contents of

the report are not known to the to the petitioner and it also cannot be

revealed to him at this stage and he is, therefore, not in a position to

rebut the same. The perusal of the status report, however, reveals

that there are allegations of large scale tax evasion. The report prima

facie reveals that petitioner is promoter of the Group and Director in

the same companies of the Group who have indulged in large scale

tax evasion. The Group has also obtained large scale credit facilities

in different names from the banks based upon fictitious transactions.

The petitioner has not been co-operating with investigating agency

and has been evasive during interrogation. Keeping in mind the fact

that petitioner was the main person controlling/ directing affairs of

the group within and outside India and there is large scale tax

evasion and investigation is still in progress and there is a strong

apprehension that petitioner may not return and, thus, will not be

available for investigation, he cannot be granted permission to travel

abroad at this stage. The application of the petitioner for seeking

permission to travel abroad is, therefore, dismissed and stands

disposed of accordingly.

BRIJESH SETHI, J.

JANUARY, 28, 2020 (Amit)