TaxTMI 
TaxTMI 
2021 (12) TMI 132
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.....12.2018 asking them to show cause as to why adjudication proceedings in terms of section 16(1) r/w sec. 13 of the Foreign Exchange Management Act, 1999 (hereafter 'FEMA') should not be initiated against them. 2. The above notice is triggered on the basis of the complaint dated 24.12.2018 filed inter alia u/s. 16(3) for alleged contravention of the provisions of sections 3(b), 5, 6(2)(a) & 10(6) of FEMA r/w. Regulations 3 & 4(a) of the Foreign Exchange Management (Permissible Capital Account Transactions) Regulation 2000 in relation to a foreign exchange equivalent to Rs. 1,80,77,58,989-00. As already mentioned above, all the petitioners seek quashment of the complaint as well. 3. The essential ground of challenge to the impug....
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....uld dilute the efficacy of the statutory scheme and undermine the institutional dignity of the machinery constituted by Parliamentary legislation; in fact, the ground of mala fide structured on an arbitral proceedings wherein the Central Government had suffered an award, (which is reportedly now being examined by the Hon'ble Delhi High Court) has been rightly given up after some arguments; even otherwise, no case is made out for the indulgence of this Court on the ground of mala fide, factual or legal. (b) Learned Sr. Advocate Mr. Raghavan in support of his submission that a show cause notice bereft of minimum material particulars is 'no notice' and such a notice is liable to be voided when put in challenge, banked upon....
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....d ASG Mr. Naragund does not have quarrel with the propositions arguably emerging from the cited Rulings; however, he submits that these propositions are not invocable in the fact matrix of the case; what is being decided in the contemplated proceedings in terms of notice is only the 'enquiry worthiness' of the matter and nothing more than that; it is not that any punitive action will follow; however, this does not mean that a truncated notice can be sustained, is also true. (c) This Court is broadly in agreement with the contention of learned ASG that the arguable infirmities in the subject notice pale into insignificance when one looks at the contents of the complaint, a copy whereof admittedly accompanied it; FEMA and the....
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....is also open to the petitioners even now to solicit information from the said company or persons associated with the same or from the answering respondents who being the instrumentality of State under Article 12 of the Constitution of India would conduct themselves as 'virtuous litigants' and tall & fair qua the citizens; the respondents would positively respond to such solicitation so that whatever arguable vagueness in the subject notice/complaint would evaporate in thin air; all this has to be done without consuming much time is ideal; thus the argument of the petitioners that the statutory scheme does not provide for the same, does not merit countenance. (f) The impugned notice mentions about the petitioners being the p....
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.... No. 35188/2016 & connected matters disposed off on 6.10.2017 also to some extent comes to the rescue of respondents; the noticee company and two of its directors had laid a challenge to the show cause notice dated 31.05.2016 that was founded on complaint evenly dated; they were issued under section 16(3) of FEMA proposing to hold adjudication proceedings in terms of section 16(3) and Rule 4 of Rules of 2000; this was substantially on the same fact matrix; the learned Co-ordinate Judge declined to grant indulgence in the matter; one of the petitioners therein had carried the matter in W.A. No. 6484/2017 that was negatived by the Division Bench vide order dated 5.7.2019; further challenge thereto in S.L.P. No. 18534/2019 also failed at the h....