PRABHAT KUMAR SRIVASTAVA Vs. DIRECTOR OF ENFORCEMENT

JUDGEMENT

(1.) THIS order shall dispose of the appellants appeal under Section 54 of foreign Exchange Regulation Act, 1973 read with Section 35 of the Foreign exchange Management Act, 1999 against the order dated 30th September, 2005 in appeal No. 251 of 1997 dismissing the appeal of the appellant and upholding the adjudication No. SDE (APK)/iii/07/1997 dated 7th May, 1997 passed by Special director, Enforcement, imposing a penalty of Rs. 5. 00 lakh against the appellant for the contravention of provisions of Section 8 (1) read with Section 64 (2) of the Foreign Exchange Regulation Act, 1973.

(2.) THE brief facts for comprehension of disputes are that on 13th February, 1993, the officers of Central Economic Intelligence Bureau, New Delhi, searched the residence of the appellant and seized foreign currencies, US$ 64015, canadian Dollar 4789, Saudi Riyals 600, Italian Lira 5,00,000 and Indian currency of Rs. 43,800/ -.

(3.) ON 13th and 14th February, 1993, the statement of the appellant was recorded by the respondent, Director of Enforcement under Section 40 of Foreign Exchange regulation Act, 1973 in which the appellant stated that the seized foreign currencies were given to him by Dr. Anand who lives in Doha, United Arab emirates, in December 1991 when he had come to Delhi and on his subsequent visits after declaring the same on his arrival. The appellant contacted Dr. Anand in Doha and informed him of the seizure of foreign currency from him. A letter was written by Dr. Anand to the respondent claiming that the seized foreign currencies from the petitioner were his which were given by him to the petitioner for the purpose of acquiring property for charitable hospital. The petitioner also filed an affidavit dated 12th March, 1993 of Dr. Anand along with a copy of the letter which was sent by Dr. Anand to the respondent.