Pre-adjudication writ challenge to FEMA show-cause notice fails where statutory adjudication and appeal remedies are available.

A writ petition under Articles 226 and 227 was held not maintainable against a FEMA show-cause notice and complaint at the pre-adjudication stage. The notice set out specific allegations, the complaint basis, the invoked provisions, and the adjudicatory process under FEMA and the applicable rules, so it was not a final determination or an action without jurisdiction. The availability of the statutory mechanism for adjudication, appeal to the Appellate Tribunal, and further appeal weighed against judicial interference. Allegations of mala fides, predetermination, and a background dispute, including arbitration, were insufficient to halt the statutory enquiry where an effective remedy existed.

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Issues: Whether writ petitions under Articles 226 and 227 were maintainable to quash a show-cause notice and complaint issued under FEMA on the grounds of mala fides, predetermination, and availability of alternative remedy.

Analysis: The show-cause notice disclosed specific allegations, the basis of the complaint, the provisions invoked, and the manner in which adjudication would proceed under FEMA and the adjudication rules. The notice therefore could not be treated as a concluded determination of liability or as one issued without jurisdiction. The existence of an alternative statutory mechanism under FEMA, including adjudication, appeal to the Appellate Tribunal, and further appeal, weighed against interference at the notice stage. Mere allegations that proceedings were motivated by the background dispute and arbitration did not establish mala fides sufficient to stall the statutory enquiry, particularly when the Act provided an effective remedial framework.

Conclusion: The writ petitions were not maintainable at the stage of show-cause notice and complaint, and the challenge was rejected.

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