1999 (4) TMI 665

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....er This appeal is directed against Adjudication Order No. Addl./BKS/V/78-79/88 under which a penalty of Rs. 10,000 for Show Cause Notice II and a penalty of Rs. 5,000 for Show Cause Notice III with a total of Rs. 15,000 has been imposed on the appellant for contravention of the provisions of section 9(1)(a) and (c) of the Foreign Exchange Regulation Act, 1973. 2. The application for dispensa....

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....tal amount, Rs. 50,000 was later repaid to V.K. Mohamed Hussain as advanced by him while the remaining Rs. 50,000 from V.M. Kuthbudeen remained outstanding. On this factual backdrop, the respondent issued two show-cause notices bearing No. T-4/45-M/83/SCN-II & III dated 13-5-1983 and 27-5-1983 alleging violation of section 9(1)(a) and (c). The appellant filed a reply stating that the loan was rais....

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....9-3-1982 of the appellant given to Enforcement Officer, Shri S. Krishnamachari. 5. The authorised representative has contended that these individuals are running business in India and, therefore, the appellant was not in a position to ascertain their non-resident status by any means. The appellant believed and took them as Indian resident. There is no legal obligation on these individuals to di....

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..... In these circumstances, the act of acknowledging debt in favour of aforesaid two persons is sufficiently proved. The copies of the pronotes are also available on the record along with admittance of repayment of the loan to V.K. Mohamed Hussain. Therefore, the violation of the provisions of section 9(1)(a) and (c) is clearly established. 7. It also requires to be noticed that the appellant acc....