In Brief
Arvind Khanna, a former Punjab MLA, was prosecuted under the Foreign Contribution (Regulation) Act for receiving over Rs. 9 crore from foreign entities without prior government permission. He claimed the funds were gifts from his Indian-domiciled father. The High Court quashed the proceedings, finding insufficient material against him. The Supreme Court allowed the CBI's appeal, holding the High Court wrongly resolved disputed factual issues at the pre-trial stage. Defence claims must be tested through trial evidence, not squashed based on preliminary documents. The Court set aside the High Court's order and remitted the matter for proper trial and fresh consideration by the Revisional Court with proper notice to the respondent."
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