SUMMARY
The Court has refused to revoke the lower court’s (trial court) order that quashed the I-T department’s lookout circular (LOC) against Huawei India CEO Li Xiongwei
It has asked Huawei India’s CEO to submit a fixed deposit (FD) of INR 5 Cr to a nationalised bank in India prior to traveling abroad
Besides, he (Huawei India’s CEO) is also ordered to join the I-T department’s probe twice or else, the said FD will be forfeited
Delhi High Court has refused to revoke the lower court’s (trial court) order that quashed the I-T department’s lookout circular (LOC) against Huawei India CEO Li Xiongwei.
However, the Delhi High Court has added conditions to the previous order passed by the trial court. It has asked Huawei India’s CEO to submit a fixed deposit (FD) of INR 5 Cr to a nationalised bank in India prior to traveling abroad. Besides, he (Huawei India’s CEO) is also ordered to join the I-T department’s probe twice or else, the said FD will be forfeited, ET reported.
It is prudent to note that in August, the trial court gave a conditional bail to Huawei India’s CEO asking him to submit an interest-bearing FDR of INR 5 Lakh and two Indian nationalists as sureties before traveling abroad.
Meanwhile, in the latest ruling, the High Court ordered Huawei India’s CEO to give an undertaking to the I-T department stating that he will join the probe as and when ordered by the tax department via video conferencing.
Besides, Huawei India’s CEO was also asked to give an undertaking to the lower court that he would appear before it (for court cases that are against him) as and when required and in whichever mode directed by the lower court.
As per the I-T department’s LOC, Huawei India’s CEO has been termed a flight risk and a vast amount of information is required from him. On this, the High Court said the I-T department’s probe into Huawei India would take a considerable amount of time.
In the ruling, the court said, “Taking into account the factum that there is no extradition treaty of our country with China, Li (Huawei India’s CEO) falls within the category of a flight risk, but, the factum that he is alleged to have committed only a non-cognisable and an alleged bailable offence can also not be overlooked.”
The High Court further said that the departure of Huawei India’s CEO is not pernicious to India’s sovereignty, security or integrity in any manner. It will also not impact India’s bilateral relations with the neighboring country. The Court also highlighted that the I-T department, in its petition or LOC, did not raise any issue against Huawei India’s CEO indulging in terrorism or other illicit activities against the state.
In the court hearing, Huawei India’s advocate Vijay Aggarwal said that the offence of Li Xiongwei (Huawei India’s CEO) is bailable. He further said that there should not be any prejudice between a foreign national and an Indian native.
In its retort, another counsel, presenting the I-T department, said that the departure of Huawei India’s CEO would impact the economic interest of India. The counsel further informed that the I-T department is currently investigating over 600 Cr tax evasion case of Huawei India and since Li Xiongwei was serving as CEO of Huawei India during that time period, he is therefore accountable for that offense.
On this, Huawei India’s counsel said that Huawei India has already submitted an FD of INR 200 Cr along with a tax refund of INR 30 Cr (which is withheld by the department) in the INR 600 Cr tax evasion case filed against it by the I-T department.
