TaxTMI 
TaxTMI 
2026 (6) TMI 1106
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....referred to as the "Impugned Show Cause Notices") issued to the Petitioners alleging contraventions of the provisions of the Foreign Exchange Regulation Act, 1973 ("FERA"). Indian Hotels Co. vs. Directorate of Enforcement 3. One of the principal grounds of challenge urged by the Petitioners is that the Impugned Show Cause Notices were issued by Mr. A.K. Bal, who, according to the Petitioners, lacked the authority and jurisdiction in law to initiate adjudicatory proceedings under FERA. It is contended that the said notices are therefore, ex facie without jurisdiction and liable to be quashed and set aside. 4. Mr. Amit Desai, learned Senior Advocate appearing on behalf of the Petitioners, invited our attention to the Notification dated ....
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....ntments or confer fresh authority under FERA after its repeal. 7. In support of the aforesaid contention, reliance was placed upon the judgment of a Co-ordinate Division Bench of this Court in First Global Stockbroking Private Limited & Ors. v. R.M. Ramchandani & Ors., reported in 2022 SCC Online BOM 11771 wherein, an identical challenge was raised to show cause notices issued by the very same officer, namely Mr. A.K. Bal, under the provisions of FERA. The Division Bench, upon an interpretation of Section 50 of FERA and the repeal and savings provisions contained in Section 49 of FEMA, held that Mr. A.K. Bal was not validly empowered to act as an Adjudicating Indian Hotels Co. vs. Directorate of Enforcement Officer under FERA and consequ....
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....ntravention under the provisions of FERA. Only because an officer has been appointed for the purpose of acting in terms of the provisions of an Act, the same would not by itself entitle an officer to discharge all or any of the functions of the Central Government, unless specifically authorised. 35. In the circumstances, we will have to hold that Mr. A. K. Bal had no authority to issue the show-cause notices and consequently no order based on the show-cause notices could have Indian Hotels Co. vs. Directorate of Enforcement been passed. The issues framed in Para 6 are as under: For issue (a) : As "negative" Consequently, issue (b) is answered also as "negative". For issue (c): Accordingly, all pe....
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....50 of FERA to act as an Adjudicating Officer and further that, he had no authority in law, to issue show cause notices for alleged contraventions under FERA, after its repeal. The Division Bench further held that the show cause notices issued by him and the orders founded thereon, were without jurisdiction and liable to be quashed and set aside. 13. It is not in dispute before us that the impugned show cause notices in the present Writ Petition were issued by the very same officer, namely Mr. A.K. Bal. Mr. Yadav has fairly stated that the judgment in First Global (supra) has been challenged before the Hon'ble Supreme Court. However, it is equally undisputed that no stay of the said judgment has been granted till date. Mr. Yadav has a....