UNION OF INDIA Vs. JATIN C JHAVERI

JUDGEMENT

(1.) The above FERA Appeals arise out of the common Judgment and passed in the Appeals filed by each of the Respondents abovenamed being Appeal Nos.454/99, 462/99 and 463/99. By the said Order, the Appeals filed by the Respondents came to be allowed by the FERA Tribunal and resultantly certain directions came to be issued in the matter of confiscation of Foreign currency and imposition of penalty, in so far as, the RespondentsJatin C. Jhaveri and Ajit Dodia are concerned. Whereas, the RespondentJitendra Dodia was exonerated of all the allegations leveled against him for contravention of the provisions of the Foreign Exchange Regulation Act, 1973 (for short FERA). It would be also be necessary to refer to Civil Application No.24 of 2010. By the said Civil Application, the original Appellant/ Applicant i.e. Directorate of Enforcement sought, to amend the cause title by substituting the Directorate of Enforcement by the Union of India. The said amendment sought, was strongly objected to on behalf of the Respondent by relying upon the authoritative pronouncement of the Apex Court in the case of Mohtesham Mohd. Ismail Vs. Spl. Director, Enforcement Directorate & Anr., 2007 AIR(SCW) 6348. This Court by order dated 1762010 allowed the said Civil Application in terms of prayer clause (a), thereby permitting the amendment of substituting the Original Appellant/Applicant with the Union of India, however the same was allowed without prejudice to the rights and contentions of the parties in the above Appeals. In terms of the Order of this Court dated 1762010 the Learned Counsel for the respective parties addressed us on the said issue also.

(2.) Since the issue regarding the confiscation of the foreign currency in question, is pending since the year 1993, the parties had requested that the Appeals be heard at the admission stage itself. Accepting the request of the Learned Counsel for the respective parties, we proceeded to hear the Appeals finally at the admission stage.

(3.) The allegations against the Respondents concerned are for violation of the provisions of the FERA. In so far as the Respondents in Appeal No.64 and 66 of 2006 i.e. Jatin C. Jhaveri and Ajit Dodia are concerned, the contravention as alleged is of Section 8(1) of the FERA Act and in so far as the Respondent in Appeal No.65 of 2006 i.e. Jitendra Dodia is concerned, the contravention as alleged is of Section 8(1) read with Section 64(2) of the