https://www.taxtmi.com/caselaws?id=789802 Contravention under FEMA was maintained against the company and its managing director, and liability was not displaced on the facts. Penalty under Section 13(1) was treated as discretionary, so the tribunal moderated the quantum by taking account of mitigating circumstances, including the amount already deposited in compliance with the pre-deposit order. The two non-executive directors were found to be only sleeping directors, with no role in day-to-day affairs and no signature on the import documents, so liability could not be fastened on them under Sections 3(b) and 42. The company and managing director remained liable with reduced penalty, while the two directors were exonerated. en-us Thu, 19 Feb 2026 00:00:00 +0530 Wed, 15 Apr 2026 09:04:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789802 Contravention under FEMA was maintained against the company and its managing director, and liability was not displaced on the facts. Penalty under Section 13(1) was treated as discretionary, so the tribunal moderated the quantum by taking account of mitigating circumstances, including the amount already deposited in compliance with the pre-deposit order. The two non-executive directors were found to be only sleeping directors, with no role in day-to-day affairs and no signature on the import documents, so liability could not be fastened on them under Sections 3(b) and 42. The company and managing director remained liable with reduced penalty, while the two directors were exonerated. Case-Laws FEMA Thu, 19 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789802