TaxTMI 
TaxTMI 
2009 (4) TMI 442
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....ITT 42,29,756 (iii)That from the proceeds of foreign exchange so credited in the account the following cheques for payment were issued :- 17-7-1992 Ch. No. 481 in favour of Shri Prakash Chandra for Rs. 30,00,000 18-7-1992 Ch. No. 482 in favour of Shri Vikram Singh for Rs. 5,00,000 20-7-1992 Ch. No. 483 in favour of M/s. Vishwa Dharmayatan for Rs. 5,00,000 12-8-1992 Ch. No. 484 in favour of M/s. Vishwa Dharmayatan for Rs. 5,00,000 (iv)That Shri Prakash Chandra alias Prakash Chandra Yadav stated that the amounts of Rs. 30 lakhs received by him from the NRE A/c was a loan/advance given by Shri Akbar J. Verjee for construction of a house for the latter which amount was later forfeited; Shri Vikram Singh declared the amount of Rs. 5 lakhs received from the NRE A/c to be gift from Shri Akbar J. Verjee, and M/s. Vishwa Dharmayatan stated that the amount of Rs. 10 lakhs received from NRE A/c was a donation from Shri Akbar J. Verjee for construction of Ashram Building. (v )That during the course of investigation Shri Akbar J. Verjee in his letter dated 18-10-2001 addressed to Indian High Commission U.K. (which was duly authenticated by High Comm....
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....count would enable me to conduct business. Later on I found this to be incorrect advice. I was accompanied to the Canara Bank by Mr. Mahesh Ram of B.D. Steel at the request of Mr. Kumar who was at the time the Chairman of B.D. Steel and a disciple of Mr. Swami. I cannot recall the quantum of the deposit paid into the account at the time of opening the account, I went to the bank only once because I was in India only for three days during that visit. I did not personally make any other or further deposits in the Canara Bank. They have been made by someone else. After the bank account was opened I was given a cheque book and pay in book by the bank manager. When I returned to Ashram Mr. Swami asked me to hand the two books over to one Mr. Vikram Singh. Before, I handed the books over to Mr. Vikram Singh Mr. Swami asked me to sign several cheques in the book. You have stated several figures and dates when deposits were made into the said account I have not been in India on those occasions nor have I been personally involved in making those deposits at the Canara Bank. So in effect my question with regards to deposits are question I cannot answer. Other than signing blan....
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....mission/exemption from RBI to enter into aforesaid transaction but no such permission was brought to the notice of respondents and, therefore, they filed the aforesaid complaint for punishing the petitioner and two others. 5. Based upon the aforesaid complaint the ACMM vide order dated 25-11-2006 decided to frame charges against all the petitioners. Insofar as the petitioners before this Court concerned, it has been observed that the pre-summoning evidence which came on record, prima facie, proves the involvement of the petitioner. 6. Relying upon the judgment delivered by the Hon'ble Supreme Court in the case of R.S. Malik v. A.R. Antuley AIR 1986 (SC) (sic) it was further held that :- "The truth, veracity and effect of the evidence which the prosecutor proposed to adduce are not to be meticulously judged. The standard of test, proof and judgment which is to be applied finally, is not exactly to be applied. At this stage, even a very strong suspicion founded upon the material before the Magistrate which leads him to form a presumptive opinion as to existence of factual ingredients constituting the offence alleged may justify the framing of charge against the accused in re....
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....hram of accused No. 1 he was asked by him i.e., the accused No. 1 to handover the two cheque books to the accused No. 2 Vikram Singh and was also made to sign several cheques in the said books. He has also stated that he was not in India on all the occasions on which the deposits were made in the said NRE account nor he is involved in making the deposits. According to said Akbar Verjee he was introduced to the accused No. 3 in the Ashram of accused No. 3 who told them that he was excepting a sum of money from the accused No. l. Further the accused No. 3 told him that his father was a senior Minister in the Government at the relevant time. Sh. Akbar Verjee has further stated that when he left UK to travel to India the accused No. 1 had told him that he should except to receive an envelope which he should carry to India with him. Later he was delivered an envelope which he carried with him to India and handed it over to the accused No. l. He has stated that he does not recollect the exact amount but states that it was a substantial figure. I have also gone through the documents Ex. PW4/B-2 and B-4 which are the details of the passport of Akbar Verjee showing his two visits in Indi....
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.... this regard, the petitioner has also submitted :- "(i )The petitioner submits that the pre-condition to attract section 8(1) of the Foreign Exchange Regulation Act, 1973 would be "buy or otherwise acquiring or borrowing from or sell or otherwise transfer or lend to or exchange with any person not being an authorized dealer, any foreign exchange." The provision alleged against the petitioner is "otherwise acquire". The expression "acquire" must have a definite connotation and it must indicate first possession of foreign exchange and then right to appropriate the possessed foreign exchange. There is not an iota of material to indicate even possession of foreign exchange. (ii )That because the Ld. Court below failed to appreciate that the pre-condition for invoking section 8(1) of FERA, 1973 is existence of "Foreign Exchange" and an NRE cheque of Rs. 30 lakhs issued by a bank in India, expressed in Indian rupees and deposited in India is not foreign exchange. Thus charge framed is unsustainable. (iii)That the Ld. Court below failed to appreciate that deposit by way of foreign inward remittance or cash is the prescribed method of receipt of Foreign Exchange and the deposit is....
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.... deposits were not authorized. He also admitted his acquaintance with Chandraswami with whom he left his cheque books and also the present petitioner in whose favour the cheque of Rs. 30 lakhs was drawn from the said account which account has been credited to the account of the petitioner in India and which money has been appropriated by him and therefore the presumption drawn by the respondent that this is the acquisition of Foreign Exchange from abroad without the permission of RBI which is the basis of his presumption in the complaint in accordance with section 8(1) of FERA which reads as under:- "8. Restrictions on dealing in foreign exchange.-(1) Except with the previous general or special permission of the Reserve Bank, no person other than an authorised dealer shall in India, and no person resident in India other than an authorised dealer shall outside India, purchase or otherwise acquire or borrow from, or sell, or otherwise transfer or lend to or exchange with, any person not being an authorised dealer, any foreign exchange : Provided that nothing in this sub-section shall apply to any purchase or sale of foreign currency effected in India between any person and a mo....