NITIN RAMNIKLAL SHAN Vs. SPECIAL DIRECTOR

JUDGEMENT

(1.) THE petitioners, Mr. Nitin Ramniklal Shah and Mr. Mahesh Ramniklal Shah, have filed the present petition against the order dated 6 th March, 2006 passed by appellate Tribunal for Foreign Exchange rejecting their applications for dispensation of pre-deposits of the penalty amount of Rs. 5,00,000/- and rs. 5,20,000/- respectively imposed on them by the Adjudicating Authority under the Foreign Exchange Regulation Act, 1973 ( Act, for short ).

(2.) THE allegation against the petitioner Nos. 1 and 2 is that they had purchased NRI cheques of Rs. 12,21,057/- and Rs. 13,00,000/- respectively W. P. (C) No. 5284-85/2006 Page 1 from one Mr. Sanjiv Goel. It is alleged that these cheques were purchased after paying consideration of Rs. 16,04,000/- and rs. 17,00,000/- lacs and the petitioners had violated provisions of Section 9 (1) (d) of the Act. It is also claimed that the petitioners are not entitled to protection granted under the Remittance of Foreign Exchange and Investment in foreign Exchange Bonds (Immunities and Exemptions) Act, 1991 and Remittances in Foreign Exchange (Immunities) Scheme, 1991.

(3.) LEARNED counsel for the petitioners submits that the impugned order passed by the Appellate Tribunal is non-speaking and does not deal with the contentions raised by the petitioners. He has also drawn my attention to order dated 30th june, 1997 passed by Foreign Exchange Regulation Appellate Board and it is stated that in identical facts the penalty orders were quashed. This aspect has not been considered by the Appellate Tribunal.