Case against ex-Orson MD on hold again

Bhatia is under investigation by the ED for unrealised export outstandings to the tune of 1.2 million US dollars, among other instances of alleged FERA violation.

Another case being probed is the alleged violation during his tenure with Orson Electronics in respect of imports of TV kits from Japan from January 1986 to June 1986. The ED was seeking his custody to probe the alleged overinvoicing of two consignments and underinvoicing of eight consignments.

In its remand application dated June 16, 1997, the ED stated that Bhatia and Orson Electronics did not utilise forex (Japanese Yen) 39,67,830 for the purpose for which it was acquired (in the case of the two over-invoiced consignments) and had otherwise acquired and transferred Japanese Yen 154,05,331 and US $ 9035.92 in the other consignments.

Besides this, Orson and Bhatia had committed further violations by acquiring and transferring 500 million Japanese yen to the Japanese company Supra on account of price concessions.

Following an Income Tax raid on the Lan Eseda group in 1992, Bhatia also gave a statement to the FERA authorities stating that his company had an export outstanding of US $ 1.2 million for software it had exported. In his defence on why the amount had not been brought in, he claimed to have written to the RBI about the delay in realisation of the outstandings.

RBI wrote back to the ED that neither had they received such letters nor granted any extension for the time limit in respect of the outstandings. While Bhatia’s frequent foreign trips between 1987 and 1992 were also brought under investigation, he chose not to respond to the summons of the department till June 16 this year.

He was arrested on June 17 and was produced before the additional CMM, who granted him bail mainly on health grounds and that the personal custody of the accused was not necessary for investigations. The ACMM also recorded the submission of counsel of the accused that the Customs department had dropped proceedings against Bhatia in the Orson Electronics case and had continued the proceedings only against M R Chabbria.

Since then it has been a war of nerves between the department and Bhatia. Bhatia’s lawyer, J D Ved, when contacted today said Bhatia’s son Sandip has filed a complaint before a magistrate accusing deputy director of FERA Prabhat Kumar of having assaulted him in the ED office on July 25.

The ED searched Bhatia’s residence and office between June 26 and July 1, 1997 and have seized important documents relating to the two cases, the additional solicitor general, Rafique Dada appearing for the ED, told the HC.

In October, he has sought permission of the court to leave the country for a hip replacement operation, which the ED is opposing. The Central Bureau of Investigation, which has another case against Bhatia, has also opposed the application, it is learnt.