Case Law Details
Ankur Gupta Vs Union Of India And Others (Delhi High Court)
In the case of Ankur Gupta vs. Union of India and Others, decided by the Delhi High Court, the petitioner filed a Public Interest Litigation (PIL) under Article 226 of the Constitution. The PIL sought directions for authorities including the CBI, ED, Income Tax Department, and RBI to investigate alleged money laundering and tax evasion by a group of companies and individuals.
The petitioner’s main contention was that the issuance and subsequent undervalued transfer of shareholding from one respondent company to another, resulting in alleged loss to the public exchequer, warranted thorough investigation. They argued that despite submitting representations to various statutory authorities, including the Income Tax Department, no action was taken.
Respondent counsel, representing parties accused of wrongdoing, countered that the petition was motivated. They cited a previous dismissal of a similar petition against one of the respondents by the Division Bench of the High Court, with costs, on grounds of motivation. Additionally, they highlighted that the Income Tax Department had already conducted a search, seizure, and subsequent block assessment related to the impugned transactions. According to them, the department found no grounds for adverse action against their clients, indicating the matter had already been sufficiently investigated and resolved.
Further, they asserted that the transaction in question, which occurred in 2015, was a legitimate response to financial distress faced by the selling company (Respondent No. 8), aiming to repay debts to secured lenders like Punjab National Bank. They argued that the timing of the PIL, filed eight years after the transaction, demonstrated its malicious intent.
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