2024 (9) TMI 1034

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Adjudicating Authority. A penalty of rupees five lacs has been imposed on the Appellant for contravention of Section 42(1) of FEMA. 2. Ld. Counsel for the Appellant has given brief facts of the case. It is stated that Naseer Bhai Tours & Travels was a proprietorship firm operated by one Syed Naseer Ahmad and was on board as sub agent of Reliance Money Express Ltd.. For conducting cross modal for Western Union Financial Service, the RMEL was the representative/Indian agent. 3. The Apppellant founded You First Money Express Pvt. Ltd. in the year 2014 and was designated as Director. He remained on the post of Managing Director from 09.07.2015 till 03.10.2017. YouFirst Money Express Pvt. Ltd. and RMEL entered in the scheme of arrangement....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....(1) of FEMA and to support his argument, cited the judgment of Apex Court in the case Salendra Swaroop Vs. Deputy Director reported in (2020) 16 SCC 561. 6. Ld. Counsel for the Appellant made specific reference to the finding record by the Adjudicating Authority to indicate that none of the arguments raised by the Appellant was taken into consideration and even finding has not been recorded to bring the Appellant under the umbrella of Sectoin 42. The specific reference to the Proviso appended to sub-section (1) of Section 42 of FEMA was given. It is with the argument that there is nothing on record to show contravention of the provisions with the knowledge of the Appellant or his failure to exercise due diligence to prevent such contrave....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....2 of FEMA because there is no material on record to show that contravention was in his knowledge and he failed to exercise due diligence to prevent such contravention. In absence of any materials to prove it and that too when specific plea was raised by the Appellant in refence to Proviso to Section 42(1). 11. The Counsel for the Appellant further referred to the submission of Mohinder Ahuja who had taken entire responsibility on behalf of the Company being Principal Compliance Officer. The penalty has been imposed on Mohinder Ahuja also and no appeal has been filed by him. 12. To analyse the issue, it would be gainful to quote Sectoin 42 of FEMA, which is quoted thus. "Where a person committing a contravention of any of the ....