Penalty reduction under FERA: contravention upheld, but excess penalty cut after partial deposit and cooperation.

Contravention under section 9(1)(b) and section 9(1)(d) of the Foreign Exchange Regulation Act, 1973 was upheld, but the penalty was reduced because the appellant came forward without pressing legal defences, sought substantial justice, and had already deposited part of the amount. On those facts, the original penalty was treated as excessive and was reduced from Rs. 50,000 to Rs. 25,000 while the finding of contravention remained unchanged.

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Issues: Whether, notwithstanding the finding of contravention under section 9(1)(b) and section 9(1)(d) of the Foreign Exchange Regulation Act, 1973, the penalty imposed on the appellant should be reduced.

Analysis: The finding of contravention was not disputed and was upheld. The only live question was the quantum of penalty. In reducing the penalty, the Board took into account that the appellant had come forward without insisting on legal defences, sought substantial justice, and had already deposited a part of the amount. On these facts, the original penalty was considered excessive.

Conclusion: The penalty was reduced from Rs. 50,000 to Rs. 25,000, while the finding of contravention was maintained.

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