Export realisation prosecution cannot continue once regularisation, RBI approval, and rebuttal of statutory presumption are shown.

Criminal prosecution for alleged failure to realise and repatriate export proceeds under foreign exchange law was found unsustainable where the export documents had been regularised, the Reserve Bank of India had approved the write-off and extension of time, and the adjudicating authority had already exonerated the accused. Those facts displaced the statutory presumption of non-compliance, since reasonable steps to realise the proceeds had been shown and the legal foundation of the allegation no longer survived. Continuation of the criminal case was therefore treated as an abuse of process and liable to be quashed.

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Issues: Whether criminal proceedings for alleged contravention of export realisation obligations under the Foreign Exchange Regulation Act, 1973 could be quashed when the adjudicating authority had exonerated the accused, the export proceeds had been regularised, and the Reserve Bank of India had approved the write off and extension of time.

Analysis: The complaint was founded on alleged failure to secure and repatriate full export proceeds within the prescribed period, attracting the statutory presumption under Section 18(3) that reasonable steps had not been taken. The adjudicating authority, however, found that the export documents had been regularised, the company had discharged its legal obligations, and the noticees had made earnest efforts to realise the proceeds. The record also showed approval of the write off and ex post facto extension of time by the Reserve Bank of India. On those facts, the basis of the allegation under Section 18(2) lost force, and the presumption under Section 18(3) stood displaced. In that situation, continuation of the criminal proceedings would serve no purpose and would amount to abuse of the process of court.

Conclusion: The criminal proceedings were liable to be quashed and the revisional applications were allowed.

Final Conclusion: The judgment holds that once export proceeds are regularised with Reserve Bank approval and the statutory presumption of non-compliance is rebutted, prosecution under the foreign exchange law cannot be sustained.

Ratio Decidendi: Where the factual foundation of a prosecution under the export-realisation provisions of foreign exchange law is destroyed by regularisation, write off approval, and proof of reasonable steps, continuation of the criminal case amounts to abuse of process and is liable to be quashed.

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