It is revealed from the record that the Trend Setters Group of Companies were engaged in business from Cochin Export Processing Zone as 100% export-oriented units since 1989 and were exporting readymade garments to U.S.A., Canada, U.A.E., Hong Kong, etc. and that they were procuring raw materials within India and also importing fabrics/accessories from Korea, Hong Kong and U.A.E. and that appellant Shri Sebastian Chokkattu, an NRI, was the Chairman & Director of the said Group of Companies, based in Ajman, U.A.E., where he was also carrying on business in the name and style of M/s. Trend Setters, Ajman and that appellant Shri Biju Thomas was another NRI, Director in the companies and that had factories in Sri Lanka & Ajman and Offices in Hong Kong & Taiwan and that the day-to-day business affairs of the companies were looked after by Shri V.P. Gopalakrishnan Nair, one of the Directors, till 1997 and by Shri Sunil Kumar, Chief Executive Officer, from January, 1998 onwards and that the companies had bank accounts in Indian Bank, Shanmugam Road, Kochi and State Bank of Tranvancore, Overseas Branch, Kochi and that M/s. Trend Setters Instyle India Ltd. and M/s. Mode Creazone India Pvt. Ltd. could not realise substantial portion of their export proceeds to the tune of US $ 7,45,333.95 and US $ 3,97,366.51 and that the reasons for such huge outstanding were attributed to the buyers raising quality claims and refusing to take delivery of consignments due to delay in shipments and that during 1997 and 19992000, the companies faced large-scale labour unrest, consequent lock-outs and finally winding up proceedings and that during the labour strike/lock outs etc, the companies could not execute orders in time and further quality suffered as well and that the noticee companies were importing fabrics/accessories from Korea, Hong Kong, U.A.E. etc, and a number of import bills remained unpaid due to acute financial crises faced by the Group
