2011 (12) TMI 699

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....on 26 October 2009 by which the Tribunal set aside a decision of the Special Director of Enforcement. The Adjudicating Officer had by an order dated 11 May 2009 found that there was a violation inter alia of the provisions of Section 6 (3) (a) of the Foreign Exchange Management Act, 1999 read with the relevant clauses of the Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2000. The Tribunal imposed a penalty of Rs. 4 crores on the noticee Company and of Rs. 1 crore on its Director. A separate penalty of Rs. 10 lacs and of Rs. 2,50,000/respectively was imposed on the Company and its Director for violation of the provisions of Section 8 of the Foreign Exchange Management Act, 1999 ("the Act") read with the....

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....n exfacie failed to consider the findings that were arrived at by the Adjudicating Officer independently in respect of each of the six articles of charge. Consequently, an order of remand to the Tribunal would be warranted. In this view of the matter and for the reasons we would now indicate, it will not be appropriate or proper for this Court to render a finding on the merits of the issues which are raised by the Union of India in the appeals since as the First Appellate Authority, it was for the Tribunal to render a determination after exhaustively considering the findings of the Adjudicating Officer separately on each of the Articles of Charge. 4. The Reserve Bank of India had on 7 August 1996 granted permission to Adani Exports Limit....

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.... 34,80,000. vi) Sec. 6(3)(a) of FEMA r/w Regulation 13 of the FEM (Transfer or Issue of any Foreign Security) Regulation 2000 to the extent of US$ 5,00,000. vii) Section 8 of FEMA r/w Regulation 3 of the FEM (Realisation, Repatriation and Surrender of Foreign Exchange) Regulation 2000 to the extent of US$ 2,71,293." The Adjudicating Officer, by his decision, came to the conclusion that all the articles of charge, save and except for the fifth article, stood proved and imposed penalties as noted earlier (though the Adjudicating Officer has dealt with the fifth and sixth articles of charge together, the learned Counsel appearing on behalf of the Respondents fairly states that it is the sixth and seventh articles of charge....

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.... merely observed that M/s. KPMG are world renowned chartered accountants and it was difficult to imagine as to why their certificate should not be accepted. We are of the view that the case has not received the kind of serious attention which was warranted particularly having regard to the detailed findings which were rendered by the Adjudicating Officer on each article of charge. The jurisdiction of this Court in a second appeal is on a question of law under Section 35 of the FEMA, 1999. We are of the view that the interference of this Court is warranted since the first appellate authority has failed to render specific findings before it overturned the view which was taken by the Adjudicating Officer. 5. That being the position, and wit....