TaxTMI 
TaxTMI 
2019 (4) TMI 1088
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....esent petition impugning an order dated 22.09.2015 (hereafter 'the impugned order') passed by the Consulate General of India, Dubai, suspending petitioner's passport. The petitioner has been further directed to deliver his passport to the Consulate General of India, Dubai. 2. The petitioner states that he is a Non-Resident Indian (NRI) and has been residing permanently in UAE since 1993. He states that he has been carrying on business in property development and hospitality in UAE since 2011. It is alleged that the petitioner has been involved in money laundering and has transferred the sale proceeds of assets in India, belonging to his father (Late Iqbal Mirchi), to foreign countries. Pursuant to these allegations, certain directives we....
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....way of letters dated 10.04.2015to the petitioner calling upon him to furnish information in relation to four companies - M/s Vantage Enterprises Pvt. Ltd, M/s Rock Stone Reality & Hotels Pvt. Ltd., M/s Relators Hotels Projects Pvt. Ltd and M/s Horizon Estate Constructors Pvt. Ltd. The directives were issued to the petitioner under Section 37 of FEMA read with Section 133(6) of the Income Tax Act, 1961, in his capacity as being one of the Directors of the aforesaid four companies. It was further stated therein that the said information is required to be furnished within fifteen days from the receipt of the said letter. 8. The aforesaid letters were received by the petitioner on 16.04.2015. The petitioner replied to the aforesaid letters b....
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.... the summons that non-compliance with the summons will attract a penalty under Section 13 of FEMA read with Section 272A(1) of the Income Tax Act, 1961. The petitioner replied to the aforesaid letter requesting four weeks time to file the necessary documents. The said request was accepted by the ED. 12. In the meanwhile, ED sent a letter dated 18.08.2015 to respondent no.2 (the Foreign Secretary, Ministry of External Affairs, Government of India) requesting to revoke the passport of the petitioner. In response, respondent no.2 sent a letter dated 21.08.2015 to the ED stating that "necessary action has been initiated by this Ministry in this regard. CGI, Dubai has suspended the passport of Sheri Memon w.e.f 20/08/2015 for a period of 4 we....
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....ause (c) of Section 10(3) of the Passports Act is relevant and is set out below:- "10. Variation, impounding and revocation of passports and travel documents xxxxxxxxxxxxxxxx (3) The passport authority may impound or cause to be impounded or revoke a passport or travel document,- xxxxxxxxxxxxxxxx (c) if the passport authority deems it necessary so to do in the interests of the sovereignty and integrity of India, the security of India, friendly relations of India with any foreign country, or in the interests of the general public;" 17. Plainly, the concerned authority has not suspended the petitioner's passport on any concern regarding sovereignty, integrity of India, the security of India, friendly relations of India with ....
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....ection (4) of Section 16 of FEMA. 20. In view of the aforesaid Scheme, the Division Bench had repelled the contention that a passport could be suspended or revoked under Section 10(3)(c) of the Passports Act on account of nonappearance before the investigation proceedings under FEMA. 21. The Court had also noticed that provisions of FEMA do not entail custodial interrogation and, therefore, an alternative mode of examination under video conferencing was an option available to the ED. 22. In the present case, the petitioner is a non-resident Indian and contends that the provisions of FEMA are inapplicable. Notwithstanding the aforesaid contention, Mr. Tripathi, learned Senior Counsel for the petitioner had made a statement before th....
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....ture that FEMA does not entail custodial interrogation and, therefore, a request for an alternative mode examination under video conferencing was certainly an option available with the Directorate of Enforcement and should not have been simply shrugged aside. We say so, even if it is assumed that the appellant did not have a genuine threat to his life as claimed by him." 25. This Court is of the view that the controversy involved in the present petition is covered by the decision of the Division Bench in Lalit Kumar Modi(supra) and the petitioner's passport could not be suspended in public interest. 26. It is also relevant to note that in terms of Section 10(1)(e) of the Passports Act, a passport can be cancelled in cases where offenc....