Equivalent value attachment under money laundering law upheld where received funds were treated as proceeds of crime and prior-acquired property could...
FEMA adjudication principles discussed include that procedural delay does not invalidate proceedings without demonstrated prejudice, particularly in complex cross-border investigations where reasons for delay are recorded. Transfers of bank shares to non-residents require Reserve Bank permission in the approved entities' names; an initially unauthorised holding cannot support later transfers under general permission, and civil penalties do not require mens rea. Corporate officers may incur liability for consent, connivance or neglect where they fail to exercise due diligence. Escrow and security arrangements are assessed by substance: custody of shares and title deeds securing overseas loans may constitute an unauthorised guarantee. Foreign-exchange repatriation duties do not apply to a person resident outside India.
FEMA adjudication principles discussed include that procedural delay does not invalidate proceedings without demonstrated prejudice, particularly in complex cross-border investigations where reasons for delay are recorded. Transfers of bank shares to non-residents require Reserve Bank permission in the approved entities' names; an initially unauthorised holding cannot support later transfers under general permission, and civil penalties do not require mens rea. Corporate officers may incur liability for consent, connivance or neglect where they fail to exercise due diligence. Escrow and security arrangements are assessed by substance: custody of shares and title deeds securing overseas loans may constitute an unauthorised guarantee. Foreign-exchange repatriation duties do not apply to a person resident outside India.
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