KANWAR NATWAR SINGH Vs. DIRECTOR OF ENFORCEMENT

JUDGEMENT

(1.) The central question of law arising on the appeal before this Court is whether a noticee served with show cause notice under Rule 4(1) of the Foreign Exchange Management (Adjudication Proceedings and Appeal) Rules, 2000 (hereinafter referred to as 'the Rules') is entitled to demand to furnish all the documents in possession of the Adjudicating Authority including those documents upon which no reliance has been placed to issue a notice requiring him to show cause why an inquiry should not be held against him

(2.) In order to consider and decide the issue that arises for our consideration, it is just and necessary to briefly notice the relevant facts:

(3.) The appellants having received the show cause notice, instead of submitting their reply, required the Adjudicating Authority to furnish "copies of all the documents in ... possession in respect of the instant case, including the 83000 documents allegedly procured by one Virender Dayal from USA in connection with the instant case..." This seemingly innocuous request ultimately turned out to be the origin of this avoidable litigation. The fact remains that the copies of all such documents as relied upon by the Adjudicating Authority were furnished. The Authority, however, declined to furnish copies of other documents and decided to hold an inquiry in accordance with the provisions of FEMA and the Rules.