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Issues: Whether the appellant had contravened the foreign exchange regulation prohibiting the making of payments in India on behalf of persons resident outside India without the requisite exemption, and whether the penalty imposed under the adjudication order was sustainable.
Analysis: The appellant did not dispute receipt of the money and sought to characterise it as gift money from friends and relatives. The record, including the statements relied upon in the proceedings, showed that cash payments had been made in exchange for cheques or demand drafts linked to non-resident accounts. The Tribunal found no infirmity in the adjudicating authority's appreciation of the material and concluded that the explanation of gifts was untenable in the circumstances. The absence of a satisfactory rebuttal left the contravention established on the evidence.
Conclusion: The contravention under Section 9(1)(d) of the Foreign Exchange Regulation Act, 1973 was upheld and the penalty sustained against the appellant.
Final Conclusion: The appeal failed on merits and the impugned penalty order remained in force.
Ratio Decidendi: Where the admitted receipt of funds is supported by the surrounding statements and circumstances, and the explanation offered is found implausible, the contravention under FERA is established and the penalty under the Act can be sustained.
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