ABHISHEK VERMA Vs. INFORCEMENT DIRECTORATE

JUDGEMENT

(1.) The Petitioner challenges the order of the Additional Chief Metropolitan Magistrate (hereafter "the trial Court") dated 17.02.2007 whereby he was charged for committing offences punishable under Sections 8 (3) and (4), 18 (2) and (3) and Section 56, Foreign Exchange Regulation Act, (FERA).

(2.) The case of the prosecution is that the accused Petitioner, resident in India purchased and sold foreign exchange from 1991 to 1992 to persons other than authorized dealers. He maintained a Saving Account No.5002-01-43827 with Bank of India, New York, USA. Documents received from the documents received from Sh. Jayanto N. Chaudhary, Counselor, Embassy of India, Washington by his letter dated 18.02.2002, i.e. Ex.PW1/22 were relied upon by the prosecution. The investigations allegedly revealed that the bank account was opened on 12.03.1986 in the name of the present Petitioner and his father Late Srikant Verma who were authorized to operate it. After the death of his father, the Petitioner by letter dated 20.08.86 requested the Vice president of the Bank to transfer the account in his name; he continued to operate the same himself. Transcripts of the bank account for the period 28.06.1991 to December 1991 and 31.3.1992 to 29.05.1992 had been received through letter Rogatory. Those revealed that the Petitioner deposited/ lent foreign exchange amounting to US $ 45824-58 and withdrew/ transferred US $ 45029 from the bank account. This was sought to be proved by documents exhibited by the PW 1 as Ex. PW1/21 A-3 to Ex. PW 1/21A -502 and Ex. PW1/32A to Ex. PW1/23A-175.

(3.) The prosecution placed reliance on communications to show that the Petitioner was a resident in India and not an NRI since he had been continuously staying in India and carrying on business from India only. Letters received from various travel agencies confirming that foreign exchange was released under the BTQ (Basic Travel Quota) and LERM (Liberalized Exchange Rate Management System) quota favouring the petitioner to which only resident Indians are entitled, was placed on record. Further a Letter from M/s. Bajaj Travels, Ex. PW 1/24A alongwith documents Ex. PW 1/24A-1 to PW-1/24A-5 and letter dated 20.12.1999. Ex. PW1/25 by which M/s. Densons Finance Limited forwarded documents (Ex. PW1/25A-1 to PW-1/25A-3) and the American Express Letter dated 21.12.1999 (Ex.PW1/27) and documents Ex. PW!/27A-1 to PW 1/27A-20 were brought on record and proved by PW1. A Letter dated 28.06.2000 of FRRO, as well as letters dated 13.1.2000 and 10.04.2000, which showed that the Petitioner made short visits abroad for business purposes of Esam Trading Co. Ltd., and that his journeys were embarked from India and terminated in India only were placed on record of the trial Court.