R K JEWELLERS Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard.

(2.) This petition, filed under Article 226, is directed against the orderinoriginal 28th February, 2001 passed by the Special Director of Enforcement under the provisions of Foreign Exchange Regulation Act, 1973 (the repealed Act) to the extend it does not consider the question of grant of interest on the amount seized from the premises of the petitioners and returned to them without interest.

(3.) The petitioner No.1 is the partnership firm, whereas petitioner No.2 is the proprietary concern having their places of business at Ahmedabad and Mumbai. On or about 12th November, 1998, the officers of the Enforcement Directorate of Bombay Zonal unit seized a cash amount of Rs.85 lakh in Indian currency belonging to petitioner No.1 and a cheque for the sum of Rs. 5,21,490/belonging to petitioner No.2 under section 37 of the Foreign Exchange Regulation Act, 1973 ("FERA" for short). A show cause notice dated 9th November, 1999, inter alia; alleging contravention of section 9(1)(b) and section 9(1)(d) of FERA, by the petitioners were issued and proceedings thereunder were initiated against them. Finally, after a detailed hearing of the matter, an order of adjudication dated 28th February, 2001 was passed by the Special Director of Enforcement, exonerating the representative of the petitioners under FERA holding that the aforesaid amounts were in no way involved in the contravention of any provisions of the FERA. However, no specific order directing refund with interest was passed by the Special Director while passing adjudication order dated 28th February, 2001; wherein the show cause notices issued to the petitioners were discharged.