The Supreme Court has reinstated criminal proceedings against a former Chief Financial Officer of Daechang Seat Automotive, a company supplying seat frames for KIA cars, in connection with an alleged financial fraud to the tune of Rs 10 crore.
The Bench of Justice Sanjay Karol and Justice Ahsanuddin Amanullah held on April 8 that the statements given by Moon June Seok, former CFO of Daechang Seat Automotive, indicated the possibility of his involvement in receiving funds from co-accused individuals.
The top court of the country said that while upholding the rule of law, it was important to protect the investments of foreign investors and also ensure that any person accused of mishandling such funds was fully protected by the power of the phrase ‘innocent till proven guilty’.
Allowing a petition filed by Daechang Seat Automotive, the Bench observed that considering the huge amount of money involved, quashing the proceedings at this stage would not be reasonable, just and proper.
The petitioner challenged the Karnataka High Court order of 2023, which quashed the case against Seok on the grounds that his role was limited to forwarding bills to the company’s Managing Director. The High Court further said that it did not find any material suggesting Seok’s involvement in the alleged conspiracy.
The former CFO was named as one of the accused in a case filed in 2022, alleging misappropriation of funds under the guise of GST payments. A charge sheet was filed in 2023, after which the trial court took cognisance of the matter. Others accused in the case included the chartered accountants and financial advisors associated with the company.
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