TaxTMI 
TaxTMI 
2008 (7) TMI 1123
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....y) against the appellant Shri. Khaja Qutubuddin Afzal for contravention of the provisions of Section 9(1)(b) and 9(1)(d) of FERA, 1973 for having received and made payments of various amounts totalling to Rs. 35,72,000 on instructions of a person resident outside India without the permission of RBI and at the same time confiscating the seized amount of Rs. 1,70,500 to the Central Govt. in terms of Section 63 of the FERA which was found involved in contravention of the provisions of the FERA. The appellant was directed by his Tribunal to make payment of 60% of the penalty amount vide order dt. 03.09.07 which was reduced to 40% by Order dt. 27.12.07of Hon'ble High Court of Andhra Pradesh where the appellant has complied the order by makin....
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....t is argued by Ld counsel on behalf of the appellant that the statement of the appellant was exculpatory who denied knowledge of the seized documents and their contents. There was no evidence against the appellant where he was falsely implicated in this case and the impugned order was liable to be set aside. As against it, Shri. A.C. Singh, DLA, vehemently argued against the contentions raised by the appellant alleging that the documents seized from the custody of the appellants were examined by the Govt. Examiner, Hyderabad who confirmed the handwriting of the appellant on the seized documents. The names and address of the persons which were mentioned on the seized documents were also examined by the respondent who confirmed the charges ag....
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....ents.- (1) Save as may be provided in, and in accordance with any general, or special exemption from the provisions of this sub section which may be granted conditionally or unconditionally by the Reserve Bank, no person in, or resident in, India shall- (b) receive, otherwise than through an authorised dealer, any payment by order or on behalf of any person resident outside India; Explanation.-For the purposes of this clause, where any person in, or resident in, India receives any payment by order or on behalf of any person resident outside India through any other person (including an authorised dealer) without a corresponding inward remittance from any place outside India, then, such person shall be deemed to have receive....
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....t where no enimity is alleged and appellant identified by them coupled with the recovery of substantial amount of money where valid source could not be disclosed go on to prove the charges against the appellant. 9. On the basis of aforesaid discussion, the ingredients of Section 9(1)(b) and 9(1)(d) are found proved against the Appellant. I find no force in the contention of the appellant that the respondent has not been able to discharge his burden in proving the guilt against the appellant beyond reasonable doubt where the charges under Section 9(1)(b) and 9(1)(d) of the FER Act 1973 were not sustainable. But no subject has a right to sabotage national economy. The Enactment like FERA are legislations which cover a wide network of offen....