The case is titled Smt. Poonam Gahllot v. Directorate of Enforcement (W.P.(CRL) 3894/2018). It was heard in the High Court of Delhi at New Delhi and decided on December 1, 2025. The judgment was pronounced by the Hon'ble Ms. Justice Neena Bansal Krishna.

Key Issue

The core issue was whether the Directorate of Enforcement (ED) is mandated to record the statement of a woman at her residence under the Foreign Exchange Management Act, 1999 (FEMA), by applying the safeguards provided under Section 160 of the Code of Criminal Procedure, 1973 (Cr.P.C.).

Brief Facts

The Petitioner, Smt. Poonam Gahllot, was issued Summons by the Directorate of Enforcement (ED) under Section 37 of FEMA read with Section 131 of the Income Tax Act, 1961 (ITA), for the production of evidence and recording of her statement concerning the source of funds used to acquire foreign assets. The Petitioner challenged these summons, arguing that as a woman, she was protected by the proviso to Section 160 Cr.P.C., which mandates that the statement of a woman must be recorded at her dwelling place, and therefore, she should not be compelled to appear at the ED office.

Court's Analysis and Findings

The High Court decisively ruled that the investigation under FEMA is a civil inquiry, not a criminal one. The summons were issued under Section 37 of FEMA, which grants powers for discovery and production of evidence that are analogous to those under Section 131 of the ITA. The Court held that the powers granted under Section 131 of the ITA are governed by the Civil Code (i.e., the rules applicable to civil inquiries and proceedings). Conversely, Section 160 Cr.P.C., which provides the safeguard for women, is applicable only in the context of criminal investigations where police officers are exercising powers under the Cr.P.C. The Court concluded that since the proceedings under FEMA are civil in nature, the protection granted under Section 160 Cr.P.C. is not applicable. The insistence by the Petitioner for her statement to be recorded at her residence was, therefore, held to be without any legal basis.

Judgment and Directions

The High Court found no merit in the Writ Petition (Criminal) filed by the Petitioner. It was held that the Summons issued by the Directorate of Enforcement under Section 37 FEMA read with Section 131 ITA were valid, and the Petitioner was obligated to appear before the Authority as directed. The Writ Petition and all pending applications were accordingly dismissed.

To read the official judgement/notification, click here