STANDARD CHARTERED BANK Vs. DIRECTORATE OF ENFORCEMENT

JUDGEMENT

(1.) IN these writ petitions a common question arises and, therefore, the same are being disposed of by a common order. The issue raised in these petitions is with regard to the deposits in foreign currency made by power of attorney holders of Non -Resident Indians in whose names the Non -Resident External (NRE) Accounts stood. The question that arises for consideration is - whether, even for the period prior to 31 -7 -1995, such deposits in foreign currency needed to be made, necessarily, by the Non -Resident Indian account holder, in person?

(2.) THIS issue arises in the backdrop of show -cause notices against the petitioner banks issued by the Enforcement Directorate alleging violation of the provisions of Section 6(4) and Section 6(5) of the Foreign Exchange Regulation Act, 1973 ('FERA').

(3.) DURING the pendency of these writ petitions, a petition raising an identical issue came up for hearing before one of us (Badar Durrez Ahmed, J.) and the same was disposed of on 19 -4 -2007 on the basis of the statement made by the counsel appearing for the respondent Union of India. The order reads as under: