TaxTMI 
TaxTMI 
2020 (10) TMI 1069
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.... (LOC) issued against the Applicant/Petitioner and to permit her to travel abroad at the earliest. The Criminal Writ Petition has been filed to quash and set aside the LOC. 2. It is the case of the Applicant that she is residing in Dubai with her family members since last several years and frequently visiting India. She is the Chairman and Non-executive Director (suspended) of one Ushdeo International Limited (UIL) and has been at the helm of affairs of the Company since its incorporation. According to the Applicant the metal markets across the globe had crashed drastically and consequently the financial condition of the Company-UIL was severely affected and UIL had therefore defaulted in the repayment of the credit facilities provided b....
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.... at the Airport and was not allowed to board the flight. She was shocked to know that on the request made by the Respondent No.3-State Bank of India, LOC has been issued against her. It is contended that during the resolution process of UIL, two forensic audits were carried out which show that there was no syphoning or diversion of funds by the promotors and Directors of UIL. 4. Learned Senior Counsel for the Applicant/Petitioner submitted that the Applicant was not allowed to travel to Dubai on 24 February 2020 because of the LOC issued against her. Subsequently, due to the Covid-19 pandemic, air travel was suspended across the globe. It is pointed out that the Applicant is senior citizen suffering from various ailments like diabetic ne....
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....vestigation, the Applicant cannot be restrained from travelling to Dubai and the LOC is required to be stayed. 5. Having heard learned Senior Counsel for the Applicant, learned Counsel for the Respondent No.3-State Bank of India and learned Counsel for the Respondent No.1-UOI, we are not inclined to allow the present Interim Application. Admittedly, the Applicant has been at the helm of the affairs of the UIL since its incorporation as stated in para 5 of the Writ Petition. UIL has availed various credit facilities from consortium of Banks comprising of Respondent No.3-State Bank of India (Lead Bank), Central Bank of India, Bank of Maharashtra, Indian Overseas Bank, UCO Bank, Dena Bank, Andhra Bank, ICICI Bank, IDBI Bank, Bank of Baroda,....
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....company had written off the said advance of Rs. 216.00 crores in FY18 and FY19. (iv) The company sold goods worth Rs. 421.00 Crores to three UK based dormant companies during FY 17. Further these companies were dormant even during the period of transactions with the company. The company has not received payment from these entities FY 17 and FY 18 and the entire amount of Rs. 421.00 crores was outstanding as on 31.03.2018. (v) The company booked Corporate Social Responsibility (CSR) expenses of March 31 2015 amounting to Rs. 1,30,00,000.00 by issuing various cheques which have been reversed on September 30, 2015. Similarly on March 31, 2016 the company booked CSR expenses amounting to Rs. 3,64,00,000.00 by issuing a cheque ....
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.... is annexed herewith and marked as Annexure I. 10. With reference to the contents of paragraph 6 of the Writ Petition, it is respectfully submitted that the Petitioner as the Chairman of the company has been in the know and involved in the illegal acts by the company in respect whereof the Respondent No. 3 has filed the Complaint dated 26.12.2019. The inability on part of the company to repay the dues of the Consortium has been on account of the illegal acts referred above whereby the proceed of the credit facilities were siphoned of by the company and not on account of reasons sought to be pleaded by the Petitioner in the said paragraph. The global meltdown pleaded by the Petitioner is sought to be used as a reason by all w....
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....ted to become a citizen of Republic of Commonwealth of Dominica, which is known to be an offshore tax haven. The Respondent No.3-State Bank of India has filed a Complaint dated 26 December 2019 with the Central Bureau of Investigation (CBI) on the basis of the forensic audit report dated 13 September 2019 submitted by M/s. Advarisk. There are allegations against the Applicant of fraud, manipulation of accounts and diversion of funds based on the said forensic audit report. The allegations in the Complaint are of serious nature which deal with siphoning of public funds. The outstanding dues of UIL are now close to Rs. 3,300 crores as indicated earlier. Prima facie, the Office Memorandum dated 27 October 2010, as amended in respect of issuanc....