Statements under Section 40 FERA upheld despite retraction; contraventions of Sections 8, 9, 14 confirmed; penalty reduced.
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....AT upheld the admissibility and evidentiary value of statements recorded u/s 40 FERA, despite subsequent retraction, holding that retraction alone does not establish involuntariness and noting sufficient independent and cogent corroborative evidence, including recovered documents, seized cash and corroborating statements. AT affirmed findings of contravention of Ss. 8(1), 8(2), 9(1)(f)(i) and 14 FERA, rejecting the appellant's challenge to the merits of the adjudication. However, considering the appellant's age and prior deposit of part of the penalty, AT exercised discretion to reduce the penalty to Rs. 9,00,000/-, directing adjustment of amounts already deposited/released. Appeal was thus partly allowed, limited to quantum of penalty.....


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