The AT upheld penalties against appellants for violating FERA...

The AT upheld penalties against appellants for violating FERA provisions by failing to ensure wheat flour exported under the "Repayment of State Rupee Credits" scheme reached Russia. The appellants' argument that they had no control over goods after FOB export was rejected as participants in the bilateral trade scheme were obligated to ensure delivery to Russia specifically. The AT distinguished this case from precedents involving maritime agents/shipping lines, finding them inapplicable to exporters' obligations under the scheme. The tribunal determined that exporters choosing to receive payment in Indian currency under this specific bilateral framework assumed responsibility for ensuring goods reached the designated Russian destination, and found the Special Director's reasoning sufficient to uphold the penalties.