BANK OF NOVA Vs. UOI

JUDGEMENT

(1.) THE present petition is filed by the petitioner praying inter alia for issuance of a writ of certiorari for quashing and setting aside the order dated 13.12.2004 passed by the respondent No.2/Adjudicating Officer and for dropping of the proceedings against the petitioner. The second relief sought by the petitioner is for quashing of the proceedings initiated against it pursuant to the memorandum dated 31.05.2002, issued by the respondents, pending before respondent No.2.

(2.) THE dates and events, which are relevant to decide the present petition are as follows. On 26.05.2002, a notice was issued to the petitioner/bank by the Enforcement Directorate regarding investigation under the Foreign Exchange Regulation Act, 1973 (hereinafter referred to as the "FERA") read with Section 49(3) and 49(4) of the Foreign Exchange Management Act, 1999 (hereinafter referred to as the "FEMA"), which was received by the petitioner/bank on 28.05.2002. In the said notice, respondent No.2 sought information in respect of certain expatriate employees from the petitioner/bank. On 30.05.2002, the petitioner/bank filed a reply on merits to the aforesaid notice and furnished the necessary information. On the same date, the Chief Enforcement Officer of the Directorate required the petitioner/bank to provide him with the details of the salaries paid abroad to expatriate employees, if any, by 31.05.2002, which was replied to by the petitioner/bank stating inter alia that the information had already been furnished under the letter dated 30.05.2002.

(3.) ON 01.10.2003, a copy of Annexure-A to the memorandum dated 31.05.2002 was duly handed over to the counsel for the petitioner/bank. However, the file could not be made available for inspection and the matter was adjourned for the purposes of inspection of the file for 13.10.2003. Ultimately on 23.12.2003, the Adjudicating Officer passed an order stating inter alia that since the original documents had not been inspected by the counsel for the petitioner/bank as desired, the matter be adjourned sine die. On 02.01.2004, counsel for the petitioner/bank received a letter dated 31.12.2003 from the Enforcement Directorate, directing the petitioner/bank to appear for personal hearing on 13.01.2004. Pertinently, the aforesaid letter dated 31.12.2003 (Annexure-J) commenced by stating as follows :-