The Supreme Court has reinstated criminal proceedings against Moon June Seok, former Chief Financial Officer of Daechang Seat Automotive, in connection with an alleged ₹10 crore financial fraud.

Seok had initially been absolved of charges by the Karnataka High Court, which quashed the case against him in 2023 citing lack of prima facie evidence. The High Court had observed that Seok’s role was limited to forwarding bills to the company’s Managing Director and found no material suggesting his involvement in the alleged conspiracy.

However, this relief was overturned by the Supreme Court on April 8.

A Bench of Justices Sanjay Karol and Ahsanuddin Amanullah allowed an appeal filed by Daechang Seat Automotive, holding that Seok's own statements indicated the possibility of his involvement in receiving funds from co-accused individuals.

“At this stage, we are unable to convince ourselves that coming to such a conclusion [of quashing the proceedings] would be just, reasonable, and proper, more so, keeping in view the large amounts of money involved,” the Court stated.

The Bench emphasized the need to uphold the rule of law and the protection of foreign investments. “The rule of law has a responsibility to protect the investments of foreign investors, while at the same time ensuring that any person accused of mishandling such funds is really and fully protected by the power of the phrase ‘innocent till proven guilty’,” it added.

Seok is one of the accused in a case filed in 2022, alleging misappropriation of funds under the guise of GST payments. The chargesheet was filed the following year, and the trial court had taken cognizance. Other accused include chartered accountants and financial advisors associated with the company.

Representing Daechang Seat Automotive, Senior Advocate Sidharth Luthra appeared on behalf of Hyeoksoo Son, the authorised representative of the company, a supplier of seat frames for KIA cars. Senior Advocate Rajiv Shakdher represented Seok.

With the Supreme Court’s decision, the criminal proceedings against Seok are now set to continue