Order affirms FEMA s.3(b) violations for hawala under-valuation; penalties reduced for principal and corporate; two directors cleared

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Full Text of the Document

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....The AT affirmed findings that extensive multi-statute investigations, including DRI seizures and electronic material, established contraventions of Section 3(b) of FEMA by the principal operative and the corporate appellant for hawala-based under-valuation of imports; retracted statements were rejected and electronic records admitted under FEMA s.39. Penalties were mitigated: individual liable reduced to Rs.2,000,000 (pre-deposit adjusted) and corporate appellant to Rs.1,500,000. Two director appellants were exonerated and held not liable under Section 42 of FEMA. Appeals by the principal and the corporate appellant were partly allowed; appeals by the two directors were allowed in full. Pending applications disposed of accordingly.....