FEMA penalties reduced for unauthorized FDI remittances; individual fines moderated under Section 42 liability rules

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....The AT upheld contraventions of the FEMA 1999 and related 2000 Regulations against the appellant company for unauthorized receipt of inward remittances characterized as FDI, which were credited to the EEFC account contrary to prescribed norms. The penalty on the company was substantially reduced from Rs. 230 crores to Rs. 80.50 crores due to disproportionality. Individual penalties imposed on former directors and signatories to grant agreements were moderated proportionately, with amounts scaled down and corresponding fixed deposits transferred to the respondent. The appeal of the employee appellant was allowed, exempting him from penalty on grounds of lack of independent responsibility and inapplicability of vicarious liability under Section 42. The decision balances enforcement of FEMA provisions with equitable penalty assessment reflecting each appellant's role and culpability.....