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Delhi HC upholds trial court order against Huawei CEO

The Delhi High Court has refused to set aside the Trial Court order that quashed a lookout circular (LOC) against Huawei Telecommunications (India) chief executive Li Xiongwei, issued by the Income Tax Department.However, Delhi HC modified the Trial Court order and increased the amount of fixed deposit to be submitted to the court from Rs […]

The Delhi High Court has refused to set aside the Trial Court order that quashed a lookout circular (LOC) against Huawei Telecommunications (India) chief executive Li Xiongwei, issued by the Income Tax Department.
However, Delhi HC modified the Trial Court order and increased the amount of fixed deposit to be submitted to the court from Rs 5 lakh to Rs 5 crore. The bench of Anu Malhotra in a judgement passed on September 20 said, “In the circumstances, though it is not considered appropriate by the Court to set aside the impugned August 29 order of the Trial Court, which has set aside the LOC against the respondent/Huawei CEO Li Xiongwei in addition to the conditions imposed by the Trial Court.”
The Court said the respondent be permitted to travel out of India only subject to the respondent submitting an FDR to the tune of Rs 5 crores drawn on a nationalised Indian bank in the Trial Court, which on deposit is to be renewed in an automatic renewal mode, which on the failure of the respondent to join the investigation twice shall stand forfeited and which also on the failure to appear before the Trial Court as and when directed by the Trial Court shall be forfeited.
The Court further observed that, undoubtedly, taking into account the fact that there is no extradition treaty between our country and China, the respondent thus falls within the category of a flight risk.

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