VINOD KUMAR SAHADEV Vs. UNION OF INDIA

JUDGEMENT

(1.) THE appellant had filed a writ petition impugning the order dated 23. 3. 2007 passed by the Appellate Tribunal for Foreign Exchange (hereinafter referred to as "respondent No. 2") which writ petition was converted as an appeal under Section 35 of the Foreign Exchange Regulation act, 1973 (hereinafter referred to as "the FERA, 1973" ). By the impugned order, the respondent No. 2 modified the order dated 10. 4. 1991 passed by the Special Director, Enforcement Directorate (hereinafter referred to as "respondent No. 3") to the extent that the penalty of Rs. 8,50,000/- imposed upon the appellant was reduced to Rs. 5,00,000/- in respect of three show cause notices for the alleged contravention of the provisions of Section 8 (1)and 8 (2) of the FERA, 1973.

(2.) THE respondent initiated the proceedings against the appellant relying upon the statement made by one Surinder Kumar Dhawan, who, as alleged, was arrested by the Customs Authorities at Palam Airport on 13. 9. 1985 and was found in possession of Saudi Riyals 43,500, DM 12,500 and DHs 2000 while he was moving towards security check at the airport for going to Singapore by KLM Flight and stated that the foreign exchange was received by him from Vinod Kumar Sahadev, the present appellant.

(3.) AS a follow up action, the respondent conducted a search at the residential and business premises of the appellant, Surinder Kumar dhawan and B. S. Malik. It is the case of the respondents that during the aforesaid search some loose sheets were recovered from the house of Vinod kumar, which had some calculations and which were described as calculations of dealing in foreign exchange by the petitioner with one Kasturi lal.