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of <h1>Appeal Dismissed: Chairperson Upholds Penalty for Violating Foreign Exchange Regulation Act Due to Lack of Evidence.</h1> The Chairperson dismissed the appeal, affirming the Adjudication Order that imposed a penalty for contravening the Foreign Exchange Regulation Act, 1973. ... - Issues: (i) Whether the penalty under Section 9(1)(a) of the Foreign Exchange Regulation Act, 1973 imposed for receipt of a gift cheque from a non-resident without RBI exemption was sustainable.Analysis: The Tribunal examined the evidentiary basis for the adjudication order, noting that the adjudicating officer proceeded on the voluntary statement of the non-resident donor which indicated that purported gifts were issued against a premium (consideration). The Tribunal considered the applicability of the Remittances Act, 1991 and observed that the gift in question pre-dated its immunities. It analysed legal principles that a valid gift is not vitiated by the donee being unrelated to the donor, but that a gift is a sham if consideration has been paid. The Tribunal also treated the donor's recorded statement as admissible evidence in the quasi-judicial proceedings and accepted that such a statement, if voluntary and corroborated, may be used substantively to support the finding of contravention. The Tribunal observed absence of evidence from the appellant to rebut the donor's statement and noted that the adjudication relied on available evidence.Conclusion: The penalty under Section 9(1)(a) of the Foreign Exchange Regulation Act, 1973 was supported by the evidence and is sustainable; the appeal is devoid of merit and is dismissed.
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