VALLIAMMAI ACHI Vs. DIRECTOR OF ENFORCEMENTMADRAS

JUDGEMENT

(1.) This appeal arises against the order dated 23-6-1978 of the Foreign Exchange Regulation Appellant Board, affirming the order of the Enforcement Directorate, imposing a personal penalty of Rs. 5,000 and confiscating Rs. 18,100/- recovered from the appellant, for contravention of S. 5 (a) (aa) of the Foreign Exchange Regulation Act 1947.

(2.) The residential premises of one Ramaswami Chettiar was searched on 22nd May 1970, and a statement was recorded from him by the Enforcement Officers and on the basis of the said statement given by Ramaswami Chettiar, the residence of the appellant was searched by the Enforcement Officers on 23rd may, 1970. During the search, three aerogrammes and Indian currency notes amounting to Rs. 8100/- were seized. The seized aerogrammes had been addressed to the appellant by her sons Messrs. Sumbandam and Kasi Viswanathan. A statement was also taken from the appellant at the time of the seizure by the Enforcement Officers on 23rd May, 1970. In the statement the appellant had stated that Messrs Sambandam and Kasi Viswanathan. her sons, were carrying on money-lending business at Malacca, that they had sent the seized aerogrammes, that by those aerogrammes they had instructed the appellant to receive some money from Ramaswami Chettiar in the presence of one Ayothi Naidu, that in fact Ramaswami Chettiar came to the appellant's house some time ago and gave her Rs. 20,000, that out of the said sum of Rs.20,000/-, she had spent a sum of Rs. 1900/- that out of the balance of Rs.18,100/- she had deposited Rs. 10,000/- with her mother-in-law, Smt. Alagammai Achi and that the remaining Rs. 8,100/- was seized from her premises had no connection with her shop. Pursuant to the summons issued by the Enforcement Directorate to the appellant requiring her to produced the same after withdrawing it from her mother-in-law. Based on the statement seizure of the sum of Rs. 8100/-, as also the aerogrammes written by her sons, adjudication proceedings were initiated as against the appellant and by his order of adjudication dated 31st December 1973, the Deputy Director of Enforcement, Madras, held the appellant guilty of contravention of Section 5 (1) (aa) of the Act and imposed a personal penalty of Rs. 5000 and ordered confiscation of the said two amounts of Rs. 8100 and Rs. 10,000/- under Section 23 (1-B) of the Act.

(3.) There was an appeal to the Foreign Exchange Regulation Appellate Board, by the appellant and in that appeal, the Board held, by its order dated 26th September 1975, that the order of the Deputy Director of Enforcement was bad for violation of the principles of natural justice in that no opportunity was given to the appellant to cross-examine the witnesses. In that view, the Board allowed the appeal and remitted the matter to the Deputy Director of Enforcement for a fresh disposal.