SPECIAL DIR ENFORCEMENT DIRECTORATE Vs. MOHTESHAM MOHD ISMAIL

JUDGEMENT

(1.) THIS miscellaneous first appeal under Section 54 of the Foreign Exchange Regulation Act, 1973 arises from the order dated 8th July, 1994 passed by the Foreign Exchange Regulation appellate Board, New Delhi, in Appeal No. 709/1993 under Section 52 of the aforesaid Act, whereby the Appellate Board set aside the order dated 6-10-1993 passed by the Special Director, enforcement Directorate (Foreign Regulation Act) New Delhi, in Case No. T 4/32-M/91, whereby the adjudicating authority had imposed a penalty of Rs. 20,00,000/-on Mohtesham Md. Ismail (respondent No. 1 herein ).

(2.) THE appellant before this Court is the Special Director, Enforcement Directorate (Foreign exchange Regulation Act), Loknayak Bhavan, Khan Market, New Delhi.

(3.) THE facts of the case in the nutshell are; that the first respondent according to the appellant's case is a citizen of India and has been working in Dubai and is a partner in M/s. Ahamed Illiyas trading Company, Abu Dabi, U. A. E. The respondent was being approached by the people of indian origin in Abu Dabi for remitting various amounts to their relatives in India. Respondent-1 according to the appellant's case was collecting the amounts and money in Dirhams at Abu Dabi and was handing over the amount to Sri Tabraz Bhai at Abu Dabi for distribution of the same to the different persons in India. The present respondent-1 was charged for having contravened the provisions of Section 9 (3) of the Foreign Exchange Regulation Act, 1973. According to case of the appellant, the Enforcement Directorate the first respondent had caused remittance arid used to cause remit from U. A. E. the various amounts collected to the tune of Rs. 2,82,73,700/- to india through the persons other than authorised dealers in such a way that remittances were received by Mohd. Yousuf Kazia, Abdul Mateen Kazia, Abdul Rahim Kazia, Mohd. Isa Kazia and Champalal Singhvi of Bangalore, through persons other than authorised dealers in India as detailed in the annexure. On the basis of the information to the effect that Champalal Singhvi was returning home after making havala payments that the many chits containing the names and addresses to whom the payments have been made and to whom the payments were to be made. The said Champalal Singhvi was apprehended by the Officers of the Enforcement Directorate, bangalore, on 12-7-1990 at the Junction J. M. Road, C. T. 9, Bangalore. According to the case of the Enforcement Directorate, as a result of search of the person of Champalal Singhvi under section 34 of the Foreign Exchange Regulation Act, 29 chit papers were recovered and seized. According to the case of the Enforcement Directorate, the statement of Champalal Singhvi was recorded under Section 40 of the Foreign Exchange Regulation Act (Act No. 46 of 1973) (hereinafter referred to as the Act ). The investigations were conducted, in addition to the statement of Champalal Singhvi and the documents were recovered. During the course of the investigations, the statement of Mohtesham Mohd. Ismail was recorded under Section 40 of the foreign Exchange Regulation Act on 13/14-7-1990. The searches were also made under Section 37 of the Foreign Exchange Regulation Act on 12-7-1990 of Room No. 302, Hotel Mourya and the documents were seized which indicate that the brother and the brother-in-law of Mohtesham mohd. Ismail were doing the said business all over Gulf countries. Champalal Singhvi and mohtesham Mohd. Ismail were arrested by the Officers of the Enforcement Directorate, bangalore.