US Citizen Fined for Violating FEMA by Buying Indian Agricultural Land Without RBI Approval; Court Upholds Penalty.

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....The petitioner, a US citizen and Overseas Citizen of India (OCI) cardholder, violated FEMA regulations by purchasing vast agricultural properties in India without RBI permission. Compounding proceedings were initiated, and a penalty was computed as per the Master Directions. The petitioner argued that the penalty was exorbitant despite complying with RBI's directions to sell the properties to an Indian citizen. However, the court held that the computation method followed the prescribed regulations. Considering the cash component of the sale contravening FEMA, the petitioner was dealt with fairly by imposing a fine not exceeding 300% of the contravention amount. The opportunity for a hearing was provided but not availed. The court dismissed the writ petition, finding no legally sustainable grounds to fault the respondent's decision.....