S.S. SHAHUL HAMEED Vs. CHIEF ENFORCEMENT OFFICER

JUDGEMENT

(1.) This petition has been filed to quash the complaint in E.O.C.C.No.461 of 2002 for the offences under Sec. 7(1), 7(2)(v), 7(4) read with Ss. 6(4), 6(5) and Ss. 8(1), 48, 49 and 68(1) of Foreign Exchange Regulation Act, 1973 read with Clauses 11,12,23,24,25 and 27 of the FLM Memorandum of Instructions issued under Sec. 73(3) of the said Act, pending on the file of the learned Additional Chief Metropolitan Magistrate (E.O.-II), Egmore, Chennai.

(2.) The crux of the complaint is that the 1st Accused namely M/s. Nandhini Paryach Overseas Services Pvt. Ltd., is the holder of Full Fledged Money Changer's Licence valid till 27/10/1998 with certain attendant conditions from the RBI has been misusing the said RBI Licence by selling / transferring unauthorisedly the foreign exchange Traveller Cheque Stocks received from Mashreq Bank, Dubai. Accordingly, a sum of Rs.3,68,000.00 (equivalent to US $ 1,00,000/-) given by the 4th Accused Shri Manimaran, Director of A1 Company, at Dubai as security deposit. The said security deposit with Mashrequ Bank was blocked on 27/1/1998. Accused Nos.2, 3 were also Directors of the 1st Accused Company. Hence, complaint was filed.

(3.) According to the complainant there were violations in the Reserve Bank regulations. Without any valid licence the company has issued a Travellers Cheque to the Indian Company. Therefore, the prosecution has been launched, which was taken on file in E.O.C.C.No.461 of 2002 with the Additional Chief Metropolitan Magistrate, Egmore, Chennai, for the offences under Ss. 7(1), 7(2)(v), 7(4) read with Ss. 6(4), 6(5) and Ss. 8(1), 48, 49 and 68(1) of Foreign Exchange Regulation Act, 1973 read with Clauses 11,12,23,24,25 and 27 of the FLM Memorandum of Instructions issued under Sec. 73(3) of the said Act.