MOHIBALI ROSHANALI NASER Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition seeks to challenge the order dated the 8th Sept. 1986 passed by the Assistant Director, Enforcement (FERA), the respondent No. 2, purporting to be one under S.33(2) of the Foreign Exchange Regulations Act 1973. By an amendment to the petition it further seeks to challenge the order of adjudication dated the 20th June 1988 passed under Sec. 63.

(2.) The petitioner is a Travel Agent carrying on business in the firm name of Alshaya Nassar Travels. Respondent No. 1 is the Union of India and the respondent No. 2 is the Assistant Director (Enforcement). Respondent No. 3 is a Bank authorised by the Reserve Bank of India to deal in foreign exchange.

(3.) The petitioner, in the course of his business, in the month of June/July 1986 had arranged the passage of two groups of passengers to Haj. The first such group consisting of 200 passengers were scheduled to travel on the 20th July 1986 and the second group of 269 passengers on the 27th July 1986. On the 8th of July 1986 the petitioner paid to the respondent No. 3 Bank an equivalent amount of rupees for the purchase of foreign exchange (F.T.S.) for the first group of 200 passengers after receiving the said amounts from them. He submitted their passports, A-2 and F.T.S. forms duly certified by I.A.T.A. to the respondent No. 3 Bank along with their air-tickets. The passports were duly endorced for the purpose of obtaining Visa. On the morning of the 18th July 1986, respondent No. 3 Bank issued foreign exchange (F.T.S.) to 118 of the 200 passengers of the first group at Kutchi Memon Jamat Musafir Khana where these upcountry passengers had arrived and were staying. On the afternoon of the said date Shri Sandeep Naik, a representative of the respondent No. 3 Bank came to the office of the petitioner to distribute foreign exchange to the remaining 82 passengers of the first group who had arrived the same morning but were staying at various places. After foreign exchange was distributed to 28 passengers, the officers from the Enforcement Directorate came for search and seized from Shri Sandeep Naik, while in the process of delivering foreign exchange to the passengers, foreign exchange amounting to 26,500 U.S. dollars meant for being paid to the balance of 54 passengers. This seizure was purported to have been made under S.34. On the 18th July 1986, the respondent No. 3 Bank paid foreign exchange amounting to $ 26,500 to the 54 passengers of the first group. Hence, the first group left for Haj on the 20th July 1986 as per schedule.