IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 16.06.2025 CORAM:

THE HONOURABLE MR. JUSTICE G.K.ILANTHIRAIYAN Crl.RC.No.1368 of 2023 and Crl.MP.No.11421 of 2023 Manoj Kumar M.Lulla ... Petitioner Versus The Enforcement Officer, Enforcement Directorate, Government of India, Shashtri Bhavan, Chennai 600 006 ... Respondent PRAYER: Criminal Revision has been filed under Section 397 r/w 401 of the Code of Criminal Procedure, praying to call for the records pertaining to the impugned order passed in Crl.MP.No.6181 of 2022 in EOCC.No.69 of 1998 by the learned Additional Chief Metropolitan Magistrate(EO-1) Court, Egmore, Chennai dated 05.07.2023 and set aside the same.

For Petitioner : Mr.P.R.Raman, Senior Counsel for M/s.Raman and Associates For Respondent : Mr.P.Rajnish Pathiyil, Special Public Prosecutor for ED

ORDER

This criminal revision case has been preferred against the order passed in Crl.MP.No.6181 of 2022 in EOCC.No.69 of 1998 by the learned Additional Chief Metropolitan Magistrate(EO-1) Court, Egmore, Chennai dated 05.07.2023, thereby dismissed the petition filed for seeking to discharge the petitioner.

2. The respondent filed complaint alleging that the accused company and its sister companies failed to realise the export proceeds in respect of garments exported to USA – M/s.Eplosifinc, New York for more than Rs.40 crores as on 31.12.1995. During the course of search, on 09.09.1996, no one was present except for the General Manager. Subsequently, on 13.09.1996, search was conducted in the residential premises of the third accused some documents were seized. In pursuance to the seizure, the third accused was examined under Section 40 of the Foreign Exchange Regulation Act, 1973 (hereinafter called as 'the Act') and he stated that he is the Managing Director of the Group of Companies called M/s.Kiran Fasion Private Limited, M/s.Kiran Styles Private Limited, M/s.Mistry Apparels Private Limited and M/s.Kiran Creations Private Limited. They have been exporting readymade lady garments to USA. Due to certain financial difficulties of M/s.Takeway Styles Private Limited, the banker of the said company in USA requested another accused to take over the said company. Accordingly, it was taken over and a new company was started in the name and style of M/s.Xplosif INC and the said company was involved in importing readymade garments from the accused companies. When State of India, Overseas Branch started pressing for payments in respect of the exports made to the company in USA, one of the accused who took over the said company had utilised the funds of M/s.Xplosif INC started by him in USA for paying outstanding bills of another company to the tune of 5.2 million US dollars and the payments toward the exports sent to that company remain unpaid. Therefore, due to their failure to realise the full export proceeds of the goods of the value of 37,45,117.29 US dollars and by not doing or / and by not taking any action or refrain from taking any action to secure the payment for the goods in the prescribed manner within the stipulated period, without the permission of the Reserve Bank of India, the companies have contravened the provisions of Section 18(2) of the Act r/w 18(3) of the Act. Therefore, they are liable to be prosecuted under Section 56(1) (i) of the Act. The Directors are also liable to be prosecuted under Section 68 (1) of the Act. Before framing of charges, the petitioner, who is arrayed as the third accused in the complaint, filed petition to discharge himself from the charges under the Act. However, the trial court dismissed the said petition and aggrieved by the said dismissal, the present criminal revision case has been filed.

3. The learned Senior Counsel appearing for the petitioner would submit that there are totally three accused, in which the petitioner is arrayed as A3 in EO.CC.No.69 of 1998. His father had been arrayed as A2, however pending this proceeding, he died. The first accused is the company and the petitione