Samsung chairman faces arrest in India

Samsung Electronics Chairman Lee Kun-hee is facing an arrest warrant in India, with the country’s Supreme Court directing the billionaire to appear before a Ghaziabad (Uttar Pradesh) court in a $1.4 million dollar cheating case filed against him and which involves Samsung Gulf Electronics.

In an emailed statement sent to Emirates 24|7, South Korea’s Samsung Electronics has said its chairman Lee Kun-Hee has “no relation to this case whatsoever.” The statement maintains that “[t]here are no grounds, let alone evidence, to support the accusation against Chairman Lee. Chairman Lee is not involved in the day-to-day operations of the many overseas subsidiaries of Samsung.”

The court has ordered chairman Lee Kun-Hee to come to India to face criminal charges in a case where Samsung Gulf Electronics, a subsidiary, is accused of failing to pay JCE Consultancy, one of its suppliers.

In what may be just a temporary relief for Lee, a bench of Indian Supreme Court justices C.K. Prasad and P.C. Ghose have directed that the arrest warrant issued against 72-year-old Lee for his non-appearance in the case before the trial court will not be executed for a period of six weeks from the day of the order (March 31, 2014).

That gives him respite until May 11, 2014. Samsung, on the other hand, clarifies that the case is related to a multi-million dollar fraud perpetrated against the Samsung subsidiary in Dubai.

The official Samsung statement reads: “With respect to the March 31, 2014 Order of the Hon'ble Supreme Court of India, we would clarify as follows.

“This case is related to a multi-million dollar fraud scheme perpetrated against a Samsung subsidiary in Dubai, Samsung Gulf Electronics.

“The perpetrators of the fraud were convicted years ago in Dubai to 2 years in prison, but having illegally fled justice, are now wanted by the Government of the UAE.

“Samsung Gulf Electronics is a victim of this fraud scheme.

“Despite this, a private criminal complaint was filed by a party in India claiming to have received a bill-of-exchange used in this fraud. Chairman Lee has no relation to this case whatsoever.

“There are no grounds, let alone evidence, to support the accusation against Chairman Lee. Chairman Lee is not involved in the day-to-day operations of the many overseas subsidiaries of Samsung.

“We are confident that the Indian Courts will recognize the innocence of Chairman Lee and deliver justice.”

A complaint was filed by JCE Consultancy, an Indian company, against Lee in the Ghaziabad court for allegedly cheating it of $1.4 million.

Lee had approached the high court and the Supreme Court for quashing of the police complaint against him, but his plea was rejected by both the courts earlier.

The trial court, thereafter, issued arrest warrant against him for not appearing before it in the case.

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