FEMA order challenged in writ petitions deemed not maintainable; petitioners directed to pursue appeal remedy

The writ petitions challenging an order under FEMA were deemed not maintainable by the Court. The petitioners were directed to pursue the alternative remedy of appeal before the Appellate Authority under Section 17 of FEMA. The Court clarified that the Appellate Authority has the power to confirm, modify, or set aside the order appealed against, including expunging adverse remarks. The petitioners were given three weeks to avail themselves of the appeal remedy and allowed to file an application for exclusion of time spent before the Court.

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Issues:
1. Maintainability of writ petitions challenging order under FEMA
2. Adverse remarks made against petitioners in impugned order
3. Authority of Appellate Authority to expunge adverse remarks

Analysis:
The petitioners filed writ petitions seeking to quash an order passed by the Adjudicating Authority under Section 13(1) of FEMA. The Respondents raised a preliminary objection on the maintainability of the writ petitions, arguing that the petitioners have an alternative remedy of appeal before the Appellate Authority under Section 17 of FEMA. The petitioners contended that adverse remarks made against them in the impugned order cannot be expunged by the Appellate Authority. The Court noted that the proceedings were initiated under Section 7(3) of FEMA, and the order was passed under Section 13(1) of FEMA. It held that the petitioners indeed have an alternative and efficacious remedy of appeal before the Appellate Authority. The Court emphasized that the Appellate Authority has the authority to confirm, modify, or set aside the order appealed against, including expunging adverse remarks. Therefore, the petitioners were directed to avail the alternative remedy of appeal under Section 17 of FEMA within three weeks. They were also permitted to file an application for exclusion of time spent before the Court, which the Appellate Authority would consider while proceeding with the appeal.

In conclusion, the writ petitions were disposed of as not maintainable, with the petitioners directed to pursue the alternative remedy of appeal under FEMA. The Court clarified that the Appellate Authority has the power to address and potentially expunge any adverse remarks made against the petitioners in the impugned order.

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