ENFORCEMENT OFFICER ENFORCEMENT DIRECTORATE GOVT OF TAMIL NADU CHENNAI Vs. RANJIV BATRA DIRECTOR M/S KIRAN OVERSEAS LTD

JUDGEMENT

(1.) This criminal revisions are filed by the complainant-cum-Enforcement Officer, Enforcement Directorate against the common order made in M. P. Nos. 2507 and 2508 of 2004 discharging the accused from being proceeded against for violation of Sections 18(2) and 18(3) of Foreign Exchange Regulation Act 1973.

(2.) The respondents in both the revision petitions are arrayed as A1 and A2. A1 is the company represented by A2 dealing in export business. The Enforcement Directorate was informed on 13.5.1997 by the Assistant General Manager, Indian Bank, Thousand Lights Branch with enclosures on 13.5.1997 about the grant of export credit facilities to M/s. Kiran Overseas Ltd pending realisation of export proceeds on account of export made on M/s. Avia Exports Ulansi, Moscow to the tune of Rs. 14,83,64,754/-. In pursuance of the same, a reference was made to RBI to ascertain the actual position regarding the exports outstanding of the accused company and as to whether, RBI granted any extension of time and the same was replied by RBI that an extension of time application from M/s. Kiran overseas Ltd. , through its authorised dealer i. e, Indian Bank is received by RBI. As such, both the company and its Managing Director Ranjiv Batra were summoned to appear along with records and Ranjiv Batra in response to the same, appeared for the enquiry along with the records relating to outstanding export bill and relating to the efforts made to get extension of time for realisation of proceeds including institution of suit against M/s. Avia Exports, Ulanski, Moscow in the High court of Judicature at Mumbai by the company, as also supported by its authorised dealer.

(3.) After the investigation, adjudication proceedings are initiated against the Managing Director and its company for violation of Sections 18(2) and 18(3) of Foreign Exchange Regulation Act 1973 for their failure to take any steps to seek extension of time from RBI and to take reasonable steps for the payment of exported and sold goods. The accused are issued due notice and are given due opportunity to place their case and thereafter, adjudication proceedings is completed and final order was passed on merits on 29.3.2004 and the adjudication proceedings ended in favour of M/s. Kiran Overseas Limited by dropping further proceedings on the ground that all the possible efforts taken by the company and its authorised dealer, to recover the money and nothing remained to be done on their part. The order of the adjudicating authority is challenged by the Enforcement Directorate before the Appellate Tribunal.