RAMAN GUPTA Vs. DIRECTOR OF ENFORCEMENT

JUDGEMENT

(1.) Rule.

(2.) This writ petition seeks the return of Rs.7.50 lacs seized from the residence of the petitioner No.1 with interest. The petitioner Nos.1 to 2 are Sh. Raman Gupta and Sh. Amwejit Singh Chawla respectively. The respondent Nos.1-2 are Director of Enforcement, New Delhi. The case of the respondents is that a sum of Rs.7.50 lacs which was seized from the residence of the petitioner No.1 was the sale proceeds of foreign currency which was illegally sold.

(3.) The Memorandum under Section 50 & 51 of the Foreign Exchange Regulation Act was issued to Shri Girish Chander @ Pincky & Shri Ashok Chopra @ Billa and a copy of the notice was endorsed to petitioner No.1. The petitioner No.1 has sought the refund of the said amount of Rs.7.50 lacs seized from him. The petitioner No.1's contemporaneous statement was that the amount of Rs.7.50 lacs has no connection with any illegal foreign exchange transaction but is in fact a loan from one Shri Dinesh Sarna who is an Advocate and Financial Consultant. However, the petitioner No.1 later adopted the stand taken by Shri Sarna. The respondents have sought, to rebut this plea by relying upon Dinesh Sarna's stand which was to the effect that Rs.7.50 lacs were for investment. The petitioner No.1's further plea is that he has merely been endorsed a copy of notices under Section 50 & 51 issued to Girish Chander and Ashok Chopra and his legitimate funds were confiscated without affording any opportunity of hearing to him. He has further stated that since 1998 the adjudieation proceedings are going on blocking his funds.