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2022 (11) TMI 1158 - HC - Companies LawSeeking suspension of Look Out Circular (LOC), if any, issued against the petitioner - Permission to travel Abu Dhabi, Bahrain, Riyadh and London for his consultancy work related to his business - allegation of siphoning of huge amount - investigation under the Black Money (Undisclosed Foreign income and assets) and Imposition of Tax Act, 2015 at initial stage - HELD THAT:- The issuance of an LOC is in nature of an administrative action and the scope of judicial review is limited. While reviewing administrative action it was held Courts do not substitute the wisdom of the authorities as if it is sitting in appeal. The Hon’ble Supreme Court in the case of RAM JETHMALANI VERSUS UNION OF INDIA [2011 (7) TMI 844 - SUPREME COURT] had taken judicial notice of the fact thousands of crores of Indian rupees are stashed away abroad in foreign bank accounts posing a serious threat to the financial health and economy of the country. Considering the fact the investigation is at initial/crucial stage and the petitioner allegedly is evading queries and has promised to give replies only on 09.12.2022 and millions have been transferred by him to foreign accounts per investigation till date, hence the discretion needs to be exercised cautiously moreso when the petitioner’s son has not returned to India for the last two years and is not co-operating. Thus, considering the allegations of siphoning off huge amounts and the investigation under the Black Money (Undisclosed Foreign income and assets) and Imposition of Tax Act, 2015 being at initial stage I am not inclined to suspend the LOC at this stage. Petition dismissed.
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