2016 (4) TMI 715

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., learned Standing Counsel for the Directorate of Enforcement. 3. On 4.10.1996, the business and residential premises of the appellant were searched under Section 37 of the Foreign Exchange Regulation Act, 1973. In the course of the search, Indian Currency of Rs. 60,000/- was recovered from his business premises and Indian Currency of Rs. 9,40,000/- was recovered from his residential premises. 4. On the basis of the material recovered during the search and on the basis of the statements recorded from the appellant and others, a show cause notice dated 2.4.1997 was issued to the appellant by the Special Director of Enforcement, New Delhi, calling upon him to show cause as to why adjudication proceedings under Section 51 of the Foreign ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....violation of Section 9(1)(d) of the Foreign Exchange Regulation Act, 1973 and the finding of the Adjudicating Officer that S.M.Sultan was guilty of contravening the provisions of Section 8(1) of the Foreign Exchange Regulation Act, 1973, attained finality. 7. However, the Special Director, Enforcement Directorate filed a Revision before the Appellate Tribunal for Foreign Exchange, under Section 54(2) of the Foreign Exchange Regulation Act, 1973. This Revision was allowed by the Tribunal by an order dated 26.9.2006, modifying the order of the Adjudicating Officer and increasing the penalty imposed upon the appellant from Rs. 25,000/- to Rs. 5,00,000/-. The Tribunal also directed the confiscation of the amount of Rs. 10 lakhs to the Govern....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....egulation Appellate Board. The Board allowed the appeal of the individual. As against the order of the Board, the Director of Enforcement filed a further appeal before this court. A preliminary objection was raised about the maintainability of the appeal before this court. Immediately, the Director of Enforcement filed a petition to permit him to amend the cause title so that the appeal could be treated as one filed by the Union of India represented by the Director of Enforcement. 12. Thiru. G.Ramanujam, J (as he then was), held on a reading of the Explanation to Section 54 of the Foreign Exchange Regulation Act, 1973 that under the said provision, it is only Central Government who can be treated as an aggrieved party for the purpose of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 15. We have carefully considered the above submissions. 16. Before getting into the decision relied upon by the learned counsel for the appellant, it is necessary to take note of one fundamental aspect. Under the Foreign Exchange Regulation Act, 1973, a set of officers were created under Section 3. They were (1) Directors (2) Additional Directors (3) Deputy Directors (4) Assistant Directors and (5) such other classes of officers. Under Section 5 of the Foreign Exchange Regulation Act, 1973, the Central Government was empowered to authorise any officer of Customs or Central Excise or Police, to exercise such of the powers and to discharge such of the duties of the Director of Enforcement. The power of adjudication was conferred under Sec....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ly, if the Original Order itself is passed by a person of the rank of Director, the appeal would lie to the Appellate Tribunal. As against the order of the Appellate Tribunal, a further appeal is provided to this Court under Section 75 of the Act. Thus, a four tier maxim was created under the Foreign Exchange Management Act, 1999. 20. A careful comparison of the provisions of the Foreign Exchange Regulation Act, 1973 and the Foreign Exchange Management Act, 1999 would show that there was no post of Special Director under the Foreign Exchange Regulation Act, 1973. Under the Foreign Exchange Management Act, 1999 a Special Director was created only as Appellate Authority, though a person of the rank of Director would also be an Adjudicating....