CHANAN SINGH Vs. DEPUTY DIRECTOR OF ENFORCEMENT

JUDGEMENT

(1.) THIS appeal is directed against the order of the Foreign Exchange Regulation Appellate Board, dated November 29, 1985, whereby the total penalty imposed upon the appellant by the Adjudicating Officer, was reduced from Rs. 25,000 to Rs. 5,000 only, i. e. , the penalty on the charge in SCN-I was reduced from Rs. 20,000 to Rs. 4,000 and the penalty on the charge in SCN-II was reduced from Rs. 5,000 to Rs. 1,000,

(2.) ON August 17, 1981, two memoranda of charges were issued to the appellant. In the first memorandum, the allegation was that during the period 1978-79, he being a person in or resident in India transferred 2,736. 52 to a person other than an authorised dealer without any permission of the Reserve Bank of India and thereby contravened the provisions of Section 8 (1) of the Foreign Exchange Regulation Act, 1973 (hereinafter called the Act ). In the second memorandum, the allegations were that despite his arrival in India in 1972 he continued to maintain a foreign currency account with Standard Chartered Bank, London, with a balance of 4,027. 48 as on June 30, 1978 without any permission of the Reserve Bank of India and thereby contravened the provisions of Section 8 (1) read with Section 14 of the Act. As no reply was filed on behalf of the appellant, adjudication proceedings were drawn against him by the department ex parte. The Adjudicating Officer came to the conclusion that the two charges against the appellant were established. Accordingly, he imposed the penalty of Rs. 20,000 on the first charge and the penalty of Rs. 5,000 on the second charge. In appeal, the appellate Board reduced the said penalties to Rs. 4,000 and Rs. 1,000 respectively, in all Rs. 5,000 only.

(3.) ON the last date of hearing, the counsel for both the parties agreed that the records were necessary for the proper disposal of the appeal. Consequently, the case was adjourned for summoning the records.