( 1 ) THESE are two connected appeals filed under section 54 of the Foreign Exchange Regulation Act, 1973 (herein called the Act ) challenging the legality of order passed on 27th January, 1975, by the Foreign Exchange Regulation Appellate Board (herein called the Board ) upholding the findings of the Director of Enforcement that Mr. K. N Mehta (appellant in Criminal Appeal No. 120 of 1975) and his wife, Mrs. Saraswati Mehta (appellant in Criminal Appeal No. 121 of 1975) were guilty of contravening the provisions of the Act. The imposition of penalty amounts on different counts is thus sought to be set aside.

( 2 ) THE Director of Enforcement had originally issued II show cause notices to Mr. Mehta and six show cause notices to Smt. Saraswati Mehta for having dealt in foreign exchange in contravention of various provisions of the Act. After adjudication Mrs. Mehta was found guilty of one charge only; Mr. Mehta, however, was found guilty in respect of the charges covered under four show cause notices. The Board while maintaining the order of the Director on three charges, set aside his conviction and penalty for the offence covered under show cause notice No.