UMESH K. MODI Vs. DEPUTY DIRECTOR OF ENFORCEMENT

JUDGEMENT

(1.) The Appellant, Umesh K. Modi, challenges in this appeal the impugned order dated 26th March 2008 passed by the Appellate Tribunal for Foreign Exchange ("AT") dismissing his Appeal No. 668 of 2004 thereby upholding the adjudication order ("AO") dated 31st March 2004 passed by the Deputy Director ("DD") of Directorate of Enforcement ("DoE") finding him guilty of the contravention of Section 8 (3) read with Section 8 (4) and Section 68 of the Foreign Exchange Regulation Act, 1973 ("FERA") and imposing a total penalty of Rs. 1 lakh each on certain directors of Modi Xerox Limited ("MXL") including the Appellant and Rs. 5 lakh on MXL.

(2.) The Appellant states that he was a part time, non-executive director of MXL but neither in-charge of nor responsible for the conduct of its day-to-day affairs. MXL commenced its business in the year 1983-84 and had been importing goods/raw materials for its business requirements. MXL was amalgamated with Xerox Modicorp Limited ("XML") in the year 2000. Till 2001, it imported goods worth more than Rs. 700 crores.

(3.) By its letter dated 1st December 1989 the Reserve Bank of India ("RBI") informed the Enforcement Directorate ("ED") that 42 importers, including MXL had failed to submit exchange control copies of customs bills of entry as evidence of import against remittances of foreign exchange made by them. As regards MXL, it was stated that there were 20 such transactions between 12th June 1985 and 21st November 1985 amounting to approximately Rs. 2 crores.