Delhi High Court Quashes “Denied Entity List” Action for Violation of Natural Justice

The Delhi High Court examined the legality of the Directorate General of Foreign Trade’s action placing Reckitt Benckiser India Private Limited on the “Denied Entity List” and effectively disabling its Importer-Exporter Code (“IEC”) without complying with the procedural safeguards under Section 8 of the Foreign Trade (Development and Regulation) Act, 1992. 

While the Court upheld relegation of the appellant to statutory appellate remedies regarding cancellation of SEIS scrips and penalty proceedings, it quashed the communication placing the appellant on the Denied Entity List on the ground of violation of statutory requirements and principles of natural justice.