Redemption of confiscated Indian currency allowed, while FEMA penalty was upheld as token in nature.

Indian currency carried while travelling to Bhutan was treated as not permitted to be taken out of India, but the explanation for possession was accepted as satisfactory and lenient consideration was extended in respect of confiscation. The currency was therefore allowed to be redeemed on payment of redemption fine. At the same time, violation of FEMA provisions was found to be established, and the penalty was regarded as only token in nature, so the penalty was left undisturbed.

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Issues: Whether the confiscated Indian currency was liable to be redeemed on payment of fine, and whether the penalty imposed required interference.

Analysis: The appellant was found carrying Indian currency while travelling to Bhutan, and the currency was treated as not permitted to be taken out of India. The explanation for possession of the currency was accepted as satisfactory, and lenient consideration was granted for the confiscated currency. At the same time, violation of FEMA provisions was held to be established, and the penalty already imposed was viewed as only token in nature.

Conclusion: The confiscated currency was allowed to be redeemed on payment of redemption fine, and the penalty was left undisturbed.

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