Facing Tax Prosecution Does Not Automatically Bar Foreign Travel: Bombay HC

Mumbai: The Bombay High Court has ruled that an accused facing tax prosecution cannot be automatically barred from travelling abroad. The court observed that the right to travel overseas is a fundamental right.

Case Background

Justice SM Modak made the observations while dismissing a petition filed by the Directorate of Revenue Intelligence (DRI), Mumbai, which had challenged a trial court order permitting a businessman, Falgun Shroff, to attend an international furniture fair in Paris.

Details of Allegations and Bail Conditions

Shroff is facing prosecution under the provisions of the Customs Act for allegedly importing furniture and other accessories through misdeclaration and undervaluation, causing an alleged customs duty evasion of around Rs 30 crore.

He was granted bail earlier, with a condition to surrender his passport for six months, which he complied with. Later, he applied for its return to attend the Paris event. Despite DRI’s objections, the trial court granted him permission.

Court Observations

The DRI argued that permitting him to travel abroad could lead to tampering of evidence by contacting the exporters.

Counsel for Shroff stressed that the permission was only for a short duration and that “the right of his client to travel abroad is a fundamental right.”

Justice Modak observed: “It is true that the right to travel abroad is recognised as a fundamental right. Merely because a person is facing prosecution, it does not mean that he cannot travel abroad till the time the investigation is under progress or criminal case is pending.”

Balance Between Rights and Investigation

The bench noted that the DRI is still in the process of collecting material.

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“Ultimately, Court has to balance right of the investigating agency, on one hand and the right of the person facing prosecution to travel in India and abroad, on the other hand,” the judge said adding, “Merely because investigation is going on, the Respondent No.1 cannot be restrained from attending the international furniture fair.”

Court Directives

While granting permission to travel to Paris, the court has directed Shroff not to establish contact with exporters related to the case.

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