BANSIDHAR RAMGOPAL Vs. DIRECTOR OF ENFORCEMENT

JUDGEMENT

(1.) M/s. Bansidhar Ramgopal petitioner in Civil Writ No. 590 of 1971 and M/s.Bansidhar Biharilal petitioner in Civil Writ No. 591 of 1971, have challenged the two show cause notices issued to them on 10th October, 1969, for contravention of the provisions of Section 12(2) of the Foreign Exchange Regulation Act, 1947, (hereinafter called the '1947 Act') read with Central Government Notification No. 6(8)-EF-II/52, dated 22nd April, 1952. The said notices in both the cases are in identical terms and a copy thereof has been annexed as Annexure 'E' to each of the Writ petitions. They were issued by Shri M.G. Wagh, Director, Enforcement Directorate, Ministry of Finance, Department of Revenue & Insurance, Government of India The petitioners have further impugned the decision taken by the said Director vide letter of 8th June, 1970 (copy Annexure 'F') to hold adjudication proceedings as contemplated under Section 23D of 1947 Act. This decision was taken after considering the reply of the petitioners to the above said show cause notice. At the outset it is useful to quote the show cause notice issued to M/s. Bansidhar Ramgopal which is identical to the one issued to M/s. Bansidhar Biharilal. It reads :-

(2.) The petitioners In these two writ petitions are sister concerns. They had exported goods to Afghanistan of the value of Rs. 16.90 lakhs under a bilateral trade agreement between the Governments of India and Afghanistan. At the relevant time in the years 1961-62 the exporters exporting goods to Pakistan and Afghanistan were permitted to retain the proceeds of their exports and to utilize them for payment of imports from those countries into India subject, however, to a special arrangement to be made by them with the Reserve Bank of India. They were also required to give a declaration. It is the case of the petitioners that prior to exporting of the goods they gave the following declaration :

(3.) It is not necessary to go into the factual position as averred in the petition as I am deciding the two writ petitions purely on a question of law.