STAR INDIA PRIVATE LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners are aggrieved by the order passed by the Assistant Director, Directorate of Enforcement on 20/08/2004, wherein he has rejected the preliminary objections raised by the petitioners and held that the show cause notice dated 31/5/2002 is valid and that the said show-cause notice does not violate the mandate of Section 49(3) of the Foreign Exchange Management Act, 1999 ('FEMA' for short).

(2.) Petitioner No.1 company incorporated under the Companies Act, 1956 is engaged in the business of television advertisements through the channels of 'Star TV'. Petitioner No.2 is the Director of petitioner No.1 - company.

(3.) On 06/06/2002, the petitioners received a show cause notice dated 31/05/2002 whereby the Assistant Director, Enforcement Directorate called upon the petitioners to show cause in writing within 10 days as to why adjudication proceedings, as contemplated under Section 51 of the Foreign Exchange Regulation Act, 1973 ('FERA' for short) read with Section 49(3) and (4) of the FEMA Act should not be initiated against the petitioners.