Foreign exchange contravention sustained on un-retracted statement, but penalty reduced for the appellants' minor role.

Contravention of foreign exchange law was upheld where an un-retracted statement of a co-noticee, read with surrounding circumstances, was treated as sufficient to support the finding that the appellants had tendered USD 15,000. Although the incriminating material was considered weak, the Tribunal accepted that the evidence established liability. The penalty was nevertheless reduced because the appellants were found to have played only a minor role in the transaction, warranting moderation of the sanction.

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Issues: Whether the appellants were liable for contravention of the foreign exchange law on the basis of the un-retracted statement and surrounding circumstances, and whether the penalty imposed required reduction.

Analysis: The appeal arose from adjudication under the foreign exchange law concerning alleged illegal dealings in foreign currency by an authorised dealer and its director. The Tribunal accepted that the incriminating material against the appellants was weak, but held that the un-retracted statement of the co-noticee, supported by the surrounding circumstances, was sufficient to sustain the finding that the appellants had tendered USD 15,000 to the co-noticee. The Tribunal also noticed that the appellants had a minor role in the overall transaction and that the penalty deserved moderation on that account.

Conclusion: The finding of contravention was upheld against the appellants, but the penalty was reduced.

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