ARUN MAMMEN Vs. U O I

JUDGEMENT

(1.) The petitioner has approached this Court, seeking the following relief:

(2.) A complaint was filed under Section 16(3) of the Foreign Exchange Management Act, 1999 (in short, 'the FEMA, 1999') before the second respondent by the third respondent. In the complaint, it was alleged that on 24.3.2000, the brother of the petitioner made a declaration of endowment in favour of Webster Foundation at Switzerland. The said declaration of endowment was to the tune of Euro 1,23,000 equivalent to INR 52,20,784/-. The said amount was transferred into the account with LGT Bank in Liechtenstein, Vaduz, a State in Europe. It is relevant to mention here that originally the time of commission of alleged offence was during the period when Foreign Exchange Regulation Act, 1973 (in short, 'the FERA, 1973') was in force and the same was replaced by FEMA with effect from 01.06.2000.

(3.) On the basis of the complaint, a show cause notice was issued on 27.9.2012 by the Directorate of Enforcement, directing the petitioner and his brother as to why adjudication proceedings as contemplated in Section 16 of the FEMA, 1999 should not be held against them for certain contravention of the provisions of the FEMA, 1999. Although the impugned proceeding is only a show cause notice issued to the petitioner and his brother, the same is put to challenge in the present writ petition by the petitioner on the ground that the said notice issued was without jurisdiction in view of a specific provision contained in the FEMA, 1999 and also that the Adjudication Officer and the Enforcement Officer is one the same and therefore, the same was legally invalid and unenforceable.