FOREIGN EXCHANGE MANAGEMENT ACT, 1881

Sections 19 & 3

Appeal to Appellate Tribunal - Receipt of foreign currency without general or specific permission of RBI - Imposition of penalty - Relief sought for waiver of pre-deposit of penalty amount.

The Enforcement Directorate (ED) imposed penalty upon the appellant for receiving certain amount in India without any general or special permission of the RBI, otherwise than through an authorized person, in contravention of the provisions of section 3(c). In appeal, the appellant filed an application for waiver of the pre-deposit of penalty. Held: From the documents and statements on record, it was established beyond a reasonable doubt that the appellant without any general or special permission of RBI, received certain amounts in India, otherwise than through an authorized person, by order or on behalf of his friend, a person resident outside India, and thereby, he had contravened the provisions of section 3(c). Further, the seized amount was the amount involved in contraventions of the provisions of FEMA. Therefore, appeal filed by the appellant was dismissed but since the financial condition of appellant was very weak and pre-deposit of penalty would cause undue hardship to him, thus, appellant was exempted to deposit the pre-deposit of penalty.

REFERRED : Monotosh Saha v. Special Director, Enforcement Directorate & Anr. 2008(12) SCC 359 : 2009 TaxPub(CL) 0228 (SC)

FAVOUR : Against the appellant

A.Y. :

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