2015 (4) TMI 1327

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....Director) to the Manager, Bank of Baroda, Colva, Goa to freeze an Fixed Deposit of Rs. 14.60 lakhs maintained by the petitioners in the bank; and (b) Show Cause notice dated 18/12/2014 issued by the Respondent no. 2-Assistant Director (Adjudicating Authority) calling upon the petitioners to show cause as to why penalty should not be imposed and the amount of Rs. 14.60 lakhs being the fixed deposit with the bank of Baroda should not be confiscated under Section 13 (1) and 13 (2) of the Foreign Exchange Management Act, 1999 (FEMA), respectively. 3. The petitioners are British citizens holding the status of persons of Indian origin (P.I.O) and Overseas Citizens of India (O.C.I). The petitioners by a Purchase Deed dated 20/4/2006 pu....

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....hs being transferred and kept in fixed deposit with bank of Baroda at Colva. Thus the cause for seeking confiscation of the same. 6. The petitioners filed their reply dated 10/1/2015 and pointed out that the adjudication proceedings should be dropped as it is a case of harassment and without any basis. It is on 15/1/2015 that the petitioners learnt from Bank of Baroda that their fixed deposit of Rs. 14.60 lakhs in Bank of Baroda had been frozen by the Assistant Director. 7. In the above circumstances, the petitioners have filed this petition on 18/2/2015. On merits the petitioners have contended that the impugned show cause notice has no basis in law and is not sustainable. The petitioners have also contended that the freezing of the ....

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....n 17/11/2014 in terms of Section 132 (3) of the Income Tax Act, 1961. Thus the communication dated 17/11/2014 is also valid in law and calls for no interference. 10. We have considered the rival submissions. So far as the impugned show cause notice dated 18/12/2014 is concerned, the petitioners have filed a reply to the same. We find that the issue which arises for consideration in the show cause notice requires an investigation into facts. These can be raised before the Adjudicating Authority. Needless to state that the Adjudicating Authority would consider the contentions of the petitioners on its own merits and decide the validity of the show cause notice. At this stage we would not interfere with the show cause notice dated 18/12/201....