SURESH KEJRIWAL Vs. SPECIAL DIRECTOR, ENFORCEMENT DIRECTORATE

JUDGEMENT

(1.) This appeal is directed against the order dated 13th November 2007 passed by the Foreign Exchange Appellate Tribunal ('AT') dismissing the Appellant's Appeal No. 784 of 2004 thereby confirming the adjudication order of 29th April 2004 passed by the Assistant Director ('AD'), Enforcement Directorate ('ED') holding the Appellant guilty of violation of Section 9(1)(d) of the Foreign Exchange Regulation Act, 1973 ('FERA') and imposing a penalty of Rs.25,000 under Section 50 thereof.

(2.) A show cause notice dated 25th June 1996 was issued to the Appellant stating that he had received a payment of Rs.5 lakhs by a pay order dated 27th October 1994 from a Non-Resident External ('NRE') Account No. 8 with State Bank of Indore, Green Park, New Delhi which was held by Smt. Sarita Mediratta resident of the United Kingdom. It was further stated that the Appellant had through his relative Shri Hari Ram Aggarwal made a payment of Rs.5,25,000 to Shri Sunil Narang, a resident of Malviya Nagar, New Delhi on behalf of Smt. Sarita Mediratta, a person resident outside India without obtaining an exemption from the Reserve Bank of India ('RBI'). It was further stated that by making the aforementioned payment of Rs.5,25,000 on behalf of a person resident outside India, the Appellant appeared to have contravened Section 9 (1) (d) FERA. As regards Smt. Sarita Mediratta, the show cause notice stated that by abetting the aforementioned contravention, she had contravened Section 9 (1) (d) FERA read with Section 64 (2) FERA and thereby rendered herself liable under Section 50 thereof.

(3.) In the reply dated 26th August 1996 to the show cause notice, the Appellant denied making such payment on behalf of Smt. Sarita Mediratta. It was stated that the receipt of payment from an NRE Account of a person resident out of India by a person resident in India was the prescribed method of receipt of payment under the FERA. It is further pointed out that Shri Sunil Narang to whom the alleged payment was made was not issued any show cause notice.