JATINDER SINGH MADAN Vs. UNION OF INDIA

JUDGEMENT

(1.) THESE two appeals are directed against the common order dated 17th April 2008 passed by the Appellate Tribunal for Foreign Exchange ('AT') dismissing Appeal Nos. 195 of 2005 and 196 of 2005 filed by Mr. Jatinder Singh Madan @ J.S. Madan (Appellant in Criminal Appeal No. 532 of 2008) and by Mr. Satbinder Singh Madan @ S.S. Madan (Appellant in Criminal Appeal No. 573 of 2008) thereby confirming the Adjudication Order ('AO') dated 24th January 2005 passed by the Special Director, Enforcement Directorate ('ED') holding the Appellants guilty for the contravention of provisions of Section 9(1)(b) and 9(1)(d) read with Section 63 of Foreign Exchange Regulation Act 1973 ('FERA') and imposing a penalty of Rs. 10 lakhs each for the contravention of Section 9(1)(b) FERA and another 10 lakhs each for contravention of Section 9(1)(d) FERA on both of them. The ED by the same order dated 24th January 2005 held that an amount of Rs. 3 lakhs seized from J.S. Madan at New Delhi Railway Station and Rs. 54,000 seized from his residential premises, both on 4th April 1997, stood confiscated in terms of Section 63 of FERA.

(2.) THE background to these appeals is that based upon information received by the ED, J.S. Madan, a resident of 4 -D/5, Old Rajinder Nagar, New Delhi was supposed to have indulged in receipts and payment of Indian currency on the instructions of persons residing outside India and that on 4th April 1997, he was to go to Jaipur by Shatabdi Express with substantial amount of Indian currency, the officers of the ED kept surveillance at New Delhi Railway Station. J.S. Madan was apprehended by the officers and his personal search resulted in seizure of Indian currency of Rs. 3 lakhs and certain documents in the form of loose sheets pages. His residential premises and office premises were also searched which resulted in seizure of documents, Indian currency of Rs. 54,000 and small notes of foreign currency.

(3.) AS regards the amount seized from him, J.S. Madan stated that he was leaving for Jaipur with the amount on the instructions of I.P. Singh of Bangkok by Shatabdi Train and that the amount was meant for payment to Mr. Poonam Chand Jain and was to be collected by one Anil Jain on his behalf.