FUJI BANK LTD Vs. SPECIAL DIRECTOR OF ENFORCEMENT

JUDGEMENT

(1.) THESE appeals are directed against the impugned orders passed by the Foreign Exchange Appellate Tribunal ( 'AT ') dismissing the respective appeals of the appellants herein against the adjudication orders ( 'AOs ') passed by the Special Director ( 'SD '), Enforcement Directorate ( 'ED ') holding the Appellants to have contravened Section 8 (1) of the Foreign Exchange Regulation Act, 1973 ( 'FERA ') and imposing a penalty of different amounts under Section 50 of FERA on them.

(2.) THE common issue in all these cases is whether the expatriated employees seconded by the parent corporation to its branch or liaison office in India are required to be paid salaries by such liaison or branch office and further whether the payment made by the parent corporation to its expatriated employees abroad creates any liability on the liaison or branch office to repay the said amount to the parent corporation.

(3.) IT is agreed on both sides that the facts of these present appeals are more or less identical to the facts in Mitsubishi Corporation. In all these cases the Appellants have in India a liaison or a branch office of the parent corporation which is located abroad. The liaison or branch offices are permitted to operate in India pursuant to the permission granted by the Reserve Bank of India ( 'RBI ') under Section 29 (2) of FERA.