ATTAR SINGH Vs. F E R A BOARD

JUDGEMENT

(1.) On receipt of reliable information that one Shri Attar Singh was indulging in the sale and purchase of foreign exchange, in an un authorized manner and in contravention of the provisions of Foreign Exchange Regulation Act, the officers of the enforcement branch apprehended him outside the Reserve Bank of India building on 10-2-1969. His person was searched in the presence of two independent witnesses, which yielded the recovery of a traveller's cheque of Barclays Bank Ltd. of the face value of 50; one currency note of Kenya of Sh. 10/- and one British postal order of Sh. 5/. Besides this, the Indian currency to the tune of Rs. 2500/- and some other documents were also found. Later on the residential premmises of Attar Singh was searched but nothing incriminating was found from there. The officers thereafter recorded the statement of Attar Singh, wherein he is alleged to have admitted the selling and buying of foreign exchange. He admitted the purchase of the traveller's cheques of 50 from Shri Dault Ram of Moti Nagar for Rs.1050/- As the statement primafacie indicated that Attar Singh has violated the provisions of Sections 4(1) and 4(2) of the Foreign Exchange Regulations Act, he was issued a show cause notice to explain why adjudication proceedings should not be held against him for the said contravention. Attar Singh filed the reply urging there in that he has been carrying on the business of changing old and torn out currency notes into new ones, in Sadar Bazar for the last many years. He further stated that on 10-2- 1969 Shri Daulat Ram, one of his colleaglles gave him the traveller's cheque of Barcley Bank Ltd., London, for ascertaining the procedure about its encashment, and the said cheque was the property of Shri Hargobind Singh, grand father of Shri Daulat Ram. However, while he was coming out of the Reserve Bank of India building, after making the necessary enquiries, he was escorted by the officers and his person was searched leading to the recovery of these documents. He has also prayed for the return of a sum of Rs. 2500/ seized from him during the course of his search as also for the return of the traveller's cheque to its owner.

(2.) After considering the reply to the show cause notice, the evidence of Hargobind Singh and Daulat Ram, the Additional Director, Enforcement Directorate, New Delhi, held Attar Singh guilty of having contravened the proviions of Sections 4(1) and 4(2) of the Foreign Exchange Act, in respect of the foreign exchange found in his possession at the time of the search In consequence he imposed a penalty of Rs.5000/- under section 23(i) (a) of the Act.

(3.) Attar Singh was not satisfied with the result of the order of the Additional Director and preferred the appeal, which was heard and disposed of by Shri P.B. Venkata Subramaniam, Chairman of the Appellate Board in the Directorate of Enforcement. He maintained the conviction of the accused but reduced the penalty of fine to a sum of Rs. 3000/- It is against this order that Attar Singh has filed the present appeal.