RAM LAL MEHTA Vs. DIRECTOR OF ENFORCEMENT

JUDGEMENT

(1.) THESE two appeals are directed against the common order dated 15th June 2007 passed by the Appellate Tribunal for Foreign Exchange ( 'AT ') dismissing Appeal Nos. 785 and 792 of 1990. By the impugned order, the AT affirmed the order dated 30th August 1990 passed by the Special Director ( 'SD '), Enforcement Directorate ( 'ED '), holding the Appellants to be guilty of contravention of Sections 8(1) and 8(2) read with Section 64 of Foreign Exchange Regulation Act, 1973 ( 'FERA ') and imposing a penalty of Rs. 10,00,000 each.

(2.) THE background to these appeals is that, on 23rd April 1986, the SD, ED issued a Memorandum/Show Cause Notice ( 'SCN ') to the two Appellants, Shri Ram Lal Mehta, being the father, Shri Praveen Kumar Mehta, being the son and one Shri Rikhab Chand Sirohya @ Rikhab Chand Jain, requiring them to show cause as to why they should not be proceeded against for contravention of Sections 8(1) and Section 8(2) read with Section 64(2).

(3.) STATEMENTS under Section 40 FERA were recorded, inter alia, of the two Appellants, Shri Rikhab Chand Jain, Shri Pawan Kumar, an employee of Ram Lal Mehta at stall No. 14, Shankar Market, Connaught Place, New Delhi, Bhim Sain, the Manager at stall No. 14, Shankar Market, Connaught Place, New Delhi, Shri Om Prakash Mehta, the elder brother of Shri Ram Lal Mehta, Shri Sunil Kumar Gogia and Smt. Chander Mehta.