RAMESHCHANDRA KAPOORCHAND JAIN Vs. ENFORCEMENT DIRECTORATE MUMBAI

JUDGEMENT

(1.) HAVING failed in getting order of anticipatory bail, the petitioner has filed this application in this Court under section 438 of Criminal Procedure Code.

(2.) PETITIONER is sought to be arrested in connection with violation of provisions of Foreign Exchange Regulation Act, 1973 (hereinafter to be referred for short as "FERA").

(3.) ACCORDING to the petitioner, Ms.Jayanti had an account with Mashareg Bank, Mumbai, wherein an amount of 3 lacs Dollars was in credit. After about 3 months, this amount was transferred to Citi Bank for the sake of convenience. She had desire to make gift to the members in her family but Citi Bank offered very low rate of conversion. She, therefore, took back the deposit to Dubai from Citi Bank through banking channel as permitted by Reserve Bank and obtained Demand Drafts at Dubai and sent them to the family members through Armex Courier Company Dubai. These demand drafts were deposited by the beneficiaries in their respective Bank account at Mumbai. From this, an amount of Rs.75 lacs was transferred to M/s.Kapoor Jewellers Pvt.Ltd. for the family business. Since liberalisation of Gold Policy by Government, this company is dealing in imported bullion. For purchase of gold, an advance of Rs.75 lacs was made over to M/s Urvashi Exports on 31-12-1997. The latter could not deliver the Gold in time for want of stock, with Standard Chartered Bank, the amount was returned by cheque by Urvashi Exports on 5-1-1998. This cheque was lying in the business premises of the company.