The HC held that the non-grant of NOC by the ED was unjustified....

The HC held that the non-grant of NOC by the ED was unjustified. The petitioners complied with FEMA valuation norms by engaging a SEBI-registered merchant banker. Mere issuance of summons without formal findings of FEMA contraventions is insufficient to deny NOC. The ED failed to demonstrate clear FEMA violations to justify NOC refusal. The petitioners have a legitimate expectation to conduct business unhindered, absent definitive adverse findings. Prolonged investigation without conclusion cannot restrict the petitioners' right to make investments. The authorized dealer banks must ensure FEMA compliance, and regulatory safeguards remain applicable irrespective of the issuance of LOC.