TaxTMI 
TaxTMI 
2025 (5) TMI 2241
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....h amount US $ 22,27,800 was seized under panchnama dated 21.05.2007, as per following details. S. No. Description of Currency Denomination Total 1. US $ 22218 100 US $ 2221800 2. US $ 2600 50 US $ 13000 3. US $ 20 1 US $ 20 4. US $ 5 1 US $ 5 5. US $ 1 1 US $ 1 Total Foreign Currency recovered US $ released Currency Notes of US $ seized US $ 2234826 US $ 7026 US $ 2227800 Captain G.A. OJEDOKUN in his statement dated 21.05.2007 and 06.04.2007 under Section 131 of Income Tax Act, 1961, at the office of DDIT (Inv), Air Intelligence Unit, Terminal-II, Departure Lounge by the officers of Income Tax Department, stated: - (i) Since February, 2007 he has been working in Nigerian High Commission at New Delhi and getting salary US $ 7,000 per month approximately; (ii) He was carrying approximately 1.5 million US dollar in his suitcase while going to Nigeria; (iii) He has not taken any permission from Reserve Bank of India to carry the foreign currency from India; (iv) The Indian currency was withdrawn in install....
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....ank of Tokyo, New Delhi, without any reference to anybody; (ii) Captain G.A. OJEDOKUN and the warrant officer Sh. Lawrence A Odelade were the two authorized signatories to the Defence Section Account in the said bank; (iii) The Nigerian Government did not ask Captain G.A. OJEDOKUN to make any withdrawal during 26.04.2007 to 25.05.2007; (iv) Captain G.A. OJEDOKUN was not officially permitted by the Nigerian Government to obtain foreign currency US $ 22,27,800 from open market without taking prior approval of RBI; (v) Captain G.A. OJEDOKUN was not asked by the Nigerian Government to carry the foreign exchange to Nigeria in person. After pursuing the matter with the Ministry of External Affairs, New Delhi, statement of Mr. Lawrence Ajayi, S/o Shri Odelade, R/o Nigerian High Commission, Chanakya Puri, New Delhi was recorded on 12.05.07 under Section 37 of FEMA, 1999, in which he stated that since 29th September, 2004 he was working as Military Assistant (Finance), Defence Section, High Commission of Nigeria in New Delhi. His job was to receive allocation of funds from Nigeria and verify it from bank i.e. Bank of Tokyo (Defence Section) whether the....
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....-day business affairs of M/s Duggal Forex (P) Ltd. The phone numbers 24698486, 24690128 and 24652387 were installed at his shop and phone number 95120-2774813 was installed at his residential premises his mobile number was 98119-64693 the officers of Directorate of Enforcement searched his shop and during the course of search, they recovered and seized some documents and the following foreign currency and Indian currency as it did not tally with the records: - EURO 3690, AUS $ 100, Sing $ 1650 and US $ Cash 6116 and Indian Currency Rs.11,00,000/-. As per records / books, maintained there was excess of EURO 690 and shortfall of AUS $ 1525, Sing $ 1000 and US $ Cash 7629. He has not fulfilled all the conditions of RBI, as he was not maintaining the proper records. It was true that sometimes he purchased and sold foreign exchange on black market rates. He admitted that sometimes the staff of Nigerian High Commission visited his shop to sell the dollars and in lieu of that they had taken Indian currency at black market rates. Sometimes one Shri Kumar, a driver in the Nigerian High Commission came to his shop and delivered the dollars to him and took Indian currency from him. He r....
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.... to Shri Sumesh Duggal for recording his statement on the seized documents, ultimately, he appeared on 12.09.2007 and his statement was recorded wherein he stated that the statements tendered by him on 30.05.2007, 31.05.2007 and 05.06.2007 were true and correct. Certain loose sheets have been recovered from the business premises on 30.05.2007 by the officers and his explanation in regard to seized documents as follows: - Page no.1 This page was not in his hand writing; however, it was regarding sale/purchase of foreign exchange. The first transaction was related to the sale of US $ 1000 @Rs.47 per $ to one Sanjay Gupta and second transaction might be in respect of sale / purchase of US $ 6500. Third transaction was regarding sale of US $ 2500 (TC) and forth transaction was regarding US $ 1000 and he did not remember their details. Page No. 4 On this page some calculations were mentioned regarding US $ 1300, Euro 1670 and US $ 5000 and at that he does not remember the transaction details with whom he had done it. Page No. 6 - It was regarding US $ 700 and at that payment he does not remember the transaction details. Page No.34 transaction. This was regarding US $ 15000, ....
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....e money changers of Connaught Place area, New Delhi. On sale of US $ in cash, he earned Rs. 18,000/- only, which was @ 5 paisa per dollar. During the course of survey, one Shri Trilok Chand, S/o Late Shri Ram Pal was also present at the business premises of said Shri Vishal Arora and his statement was also recorded under Section 37 of FEMA on 04.07.07 in which stated that Shri Vishal Arora was engaged in illegal sale/purchase of foreign currency from his office at 1st Floor, 1 Scindia House, Janpath, New Delhi In the month of May, 2007, one Nigerian Diplomat came to Shri Vishal Arora who required US $ 3-4 lacs and the same was delivered by Shri Vishal Arora to Nigerian Diplomat. One broker told him that Shri Vishal Arora purchased these dollars from different persons of Paharganj and Connaught Place area and that the Diplomat was 40-45 years old. In another follow-up action, a survey was conducted at the business premises of Shri R.S, Duggal @ Kakaji, under section 37 of FEMA on 05.07.07 which was converted into search operation on the same day. As a result of the search Indian currency Rs.7.25 lacs, documents and foreign currency to wit US $ 300(TC), US $ 20 and HK $ 20 were....
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....sh Katyal. On 07.08.2007 a statement was recorded u/s 37 of FEMA, 1999 in which Sh. Sunil Gupta again admitted the facts which he had deposed in his statement dated 06.08.2007. Shri Sunil Gupta retracted from his statements and made some false allegations. As the allegation were wrong, false and baseless, a suitable reply was sent to him in which the allegations were denied. After retracting the statement Shri Sunil Gupta again appeared on 31.08.2007 and voluntarily tendered his statement in which he admitted that the statements tendered by him earlier were true and correct. Enquiries were made regarding Shri Rajesh Katyal which revealed that Shri Rajesh Katyal was running a money changer shop in the name and style of M/s Weldon Forex (P) Ltd., at Connaught Place, New Delhi. Summons was issued to Shri Rajesh Katyal and his statement was recorded wherein he corroborated the statements of Shri Rajinder Singh Duggal and Shri Sunil Gupta. He in his statement dated 21.08.2007 stated that he was one of the Director of M/s Weldon Forex (P) Ltd., at N-33/8, Connaught Place, New Delhi having a FFMC licence issued RBI. He requested Shri Rajinder Singh Duggal @ Kakaji of Paharganj....
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....Chandni Chowk, Delhi-6 and this number was also being used by Shri Sanjay Kumar Jain who had a shop at 21, Red Fort Market, Chandni Chowk, Delhi-6. On the basis of above-said facts, a summon was issued to Shri Sanjay Kumar Jain and in response to that he appeared on 26.10.2007 and tendered his statement. In his statement he stated that the said mobile no. 9312214180 was used by him and his brother. He knows Sh. Lawrence of Nigerian High Commission and he used to talk to him on phone. He went to Nigerian High Commission and Sh. Lawrence made payment to him in Rs.1,000/- denomination currency notes. From different people he collected US $ in cash and used to go to Embassy to hand over the same after deducting his commission. In total he gave US $ 60,000/- to Sh. Lawrence of Nigerian High Commission. Shri Sumesh Duggal clearly stated in his statement dated 30.05.2007 that he has not fulfilled all the conditions laid down by the RBI for which he got license of FFMC in the name of M/s Duggal Forex (P) Ltd., in which he was one of the Director and looking after day-to-day business activities of the company. He further stated in his statement dated 30.05.2007 that the foreign curren....
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.... Illegal acquisition and transfer of amount to Mr. Lawrence Ajayi 3. Sh. R.S. Duggal @ Kakaji US $ 5,70,000 Illegal acquisition and transfer of amount to Sh. Rajesh Katyal and Sh. Sunil Gupta @ Sunil Chamber and transfer to Sh. Lawrence Ajayi 4. Shr. Rajesh Katyal US $ 4,35,000 Illegal acquisition US $ 3,70,000 from Sh. Rajinder Singh Duggal and US $ 25000 each from Sh. Pankaj and Sh. Rajab Khan and US $ 15,000 from Kamal of Nizamuddin and transfer of the same to Sh. Lawrence Ajayi. 5. Sh. Sunil Gupta @ Sunil Chamber US $ 2,00,000 Illegal acquisition of amount from Sh. Rajinder Singh Duggal and transfer of amount to Sh. Lawrence Ajayi 6. Sh. Mohinder Singh @ Kumar US $ 65,000 Illegal acquisition and transfer the amount 7. Sh. Pankaj US $ 25,000 Illegal acquisition of amount and transfer the same to Sh. Lawrence Ajayi. 8. Sh. Sanjay Kumar Jain US $ 60,000 Illegal acquisition of US $ 15,000 and transfer to Sh. Rajesh Katyal 9. Sh. Kamal of Nizamuddin US $ 15,000 Illegal acquisition of US $ 15,000 and transfer to Sh. Rajesh Katyal. 10. Sh. Rajab Khan US $ 25000 Illegal acquisition of US $....
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....ishal Arora of M/s Maharani Tours & Travels, Shri Rajinder Singh Duggal of M/s Cheap Cloth Store, Shri Rajesh Katyal of M/s Weldon Forex (P) Ltd., Shri Sunil Gupta @ Sunil Chamber of M/s Queen Forex (P) Ltd., Shri Mahinder Singh @ Kumar, Shri Pankaj of M/s Gurcharan Forex (P) Ltd., Shri Kamal of M/s R.N. Bros. Forex (P) Ltd., Shri Sanjay Kumar Jain and Shri Rajab Khan have committed following contraventions. S. No. Name of the person/concerns Charges Respective contravention of the provisions FEMA, 1999 1. Sh. Sumesh Duggal For illegal dealings in foreign exchange by way of acquisition/purchase/sale and transfer of foreign exchange of USD 80,000 Section 3(1) (a) and Section 4 of FEMA, 1999 2. M/s Duggal Forex (P) Ltd. FFMC and its Director Shri Sumesh Duggal For illegal dealings in foreign exchange by way of acquisition/purchase/sale and transfer of foreign exchange of US $ 80,000 (Cash)+US $ 33500(Cash)+ US $ 7629 (Cash), US $ 2500(TC), UK GBP 4500, AUS $ 14625 (13000+1625), EURO 3000(3690-690) and Sing $ 1000(2650-1650) including foreign exchange of UK EUR 3690, AUS $ 100, Sing $ 1650 and US $ 6116 beside Indian Currency of Rs.11 lakh seized from ....
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....or illegal dealings in foreign exchange by way of acquisition/purchase/sale/transfer of foreign exchange. Section 10,47 read with Section 42 and Section 13(2) of FEMA, 1999 non-compliance of conditions laid down by the RBI while issuing the license. 12. Sh. Pankaj For illegal dealings in foreign exchange viz. purchase/sale of foreign exchange of US $ 25,000 Section 3(1) (a) and Section 4 of FEMA, 1999. 13. M/s Gurcharan Forex (P) Ltd. and its directors Sh. Pankaj For illegal dealings in foreign exchange viz. acquisition/purchase/sale/transfer of foreign exchange. Section 10, 47 read with Section 42 and Section 13(2) of FEMA, 1999 non-compliance laid down by the RBI while issuing the license. 14. Sh. Mohinder Singh @ Kumar For illegal dealings in foreign exchange viz. purchase /sale of foreign exchange of US $ 65,000. Section 3(1) (a) and Section 4 of FEMA, 1999 15. Sh. Sanjay Kumar Jain For illegal dealings in foreign exchange viz. purchase /sale of foreign exchange of US $ 5000 Section 3(1) (a) and Section 4 of FEMA, 1999 16. Sh. Rajab Khan For illegal dealings in foreign exchange viz. purchase /sale of foreign exchange o....
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....e 23584005, 64590475 and 9873136000 and in Nizammuddin area from one Kamal whose number was 24359702 and one person namely Shri Vishal of Janpath. He was regularly in touch with Kakaji of Paharganj, Nigerian High Commission and one Sh. Rajesh of M/s Weldon Forex and he had sold USD 7000 to Sh. Kakaji. He reiterated his statement dated 12.09.2007 and explained the seized documents as illegal transaction of foreign exchange. In reply to the SCN, noticees denied the allegations and stated that Mr. G A Ojedokum and his other accomplices have not named the noticees anywhere in his statement. On the basis of the above material on record, the Adjudicating Authority confiscated the Indian and foreign currency recovered from the possession of the aforesaid concerned persons in terms of section 13(2) of FEMA, 1999, as the said FFMC failed to comply with the conditions laid down by the RBI in terms of section 10 & 47 of FEMA, 1999. In addition, to confiscation, penalties were also imposed on notices, including the present appellants. Penalty of Rs. 60,000/- was imposed on Shri Neer Kamal and Rs.2,00,000 on M/s. R.N. Bros. Forex Pvt. Ltd. Aggrieved by the said order, appellants filed the....