PREM SINGH CHAWLA Vs. DIRECTOR OF ENFORCEMENT

JUDGEMENT

(1.) On receipt of certain information about the contravention of Foreign Exchange Regulations by Prem Singh Chawla, the present appellant, his residential premises near Panipat was searched by the Officers of the Enforcement Directorate on 19-1-1971, as aresult of which, apart from Rs. 4.600.00 in cash, several documents, account books, diaries, etc. were seized. The appellant was interrogated with reference to the seized documents on that very day and subsequently also. On the basis of these statements, seized documents and further enquiries made from various quarters the appellant was issued the following three memos :-

(2.) The appellant filed the reply to the three show cause memos. denying the allegations. The Department as well as the appellant produced witnesses during the course of the adjudication proceedings. The Special Addl. Director on the basis of the material on record came to the conclusion that the total transactions involved in the memo under Section 5(l)(aa) of the Act are 9 involving a sum of Rs. 3,68,000.00 and imposed a penalty of Rs. 45,000.00 . As against the contravention of Section 5(l)(c), the finding was that there are as many as 51 disbursements involving a sum of Rs. 2,54,700.00 for which a penalty of Rs. 2,55,000.00 was imposed. As regards the third, the appellant was held to a have contravened the provisions of Section 5(1)(d) and imposed a penalty of Rs. 5,000.00 .

(3.) Against this order, the appellant filed an appeal which was heard and disposed of by the Chairman of the Appellate Board on 14-5-1976. As against the first two memos, the penalty was reduced to a sum of Rs. 42,000.00 and Rs. 2,40,000.00 respectively while in the third memo, the penalty of Rs. 500.00 was imposed. The appellant is not satisfied with the outcome of appeal and has filed the present appeal before this Court.