Pre-deposit waiver in foreign exchange penalty appeals was limited where acquittal was only a relevant factor, not binding.

Complete waiver of pre-deposit of penalty pending appeal under section 52(2) of the Foreign Exchange Regulation Act, 1973 was refused because the criminal court's acquittal was not binding on the adjudicating authority or Tribunal, though it remained a relevant circumstance. The petitioner's asserted cash liquidity problems and financial hardship justified only a partial relaxation of the pre-deposit requirement. The direction was therefore modified to require deposit of 50% of the penalty and security for the balance.

---

---

Issues: Whether the petitioner was entitled to complete waiver of the pre-deposit of penalty pending appeal under section 52(2) of the Foreign Exchange Regulation Act, 1973.

Analysis: The criminal court's acquittal was not binding on the adjudicating authority or the Tribunal, though it could be considered as one relevant circumstance. The petitioner's plea of cash liquidity problems and financial hardship, along with the circumstances noted in the impugned order, justified only a limited modification of the pre-deposit direction and not a total waiver.

Conclusion: Complete waiver of the penalty pre-deposit was declined, but the direction was modified to require deposit of 50 per cent of the penalty amount and security for the balance, in favour of the petitioner to that limited extent.

---