Back
IN THE HIGH COURT OF JUDICATURE AT MADRAS
D.BHARATHA CHAKRAVARTHY, J
Universal Biofuels Private Limited – Appellant
Versus
Directorate Of Enforcement Through Office Of The Special Director – Respondent
ORDER :
This Writ Petition challenges the letter dated 17.06.2022 issued by the Reserve Bank of India (hereinafter RBI) (the second respondent in the writ petition), which returned the petitioner's compounding application dated 31.03.2022, as well as the order dated 07.12.2022 bearing reference No.SDE/SRO/HYZO/21/22 issued by the Directorate of Enforcement(hereinafter ED) (the first respondent in the writ petition). The petitioner seeks to quash both orders and consequently direct the ED to provide a No Objection Certificate in relation to the compounding application dated 31.03.2022 before respondent No.2, and to instruct the RBI to consider the petitioner's compounding application dated 31.03.2022 expeditiously.
2. The factual context in which the Writ Petition arises is as follows:
2.1. The ED, by its communication dated 07.06.2017, commenced an investigation under Section 37 of the Foreign Exchange Management Act, 1999 ( FEMA ) and directed the petitioner to furnish certain records and documents related to the advance remittances received since 2010, as well as the details of exports and imports from that year. On 29.06.2017, the petitioner submitted the required information. Addi
The Enforcement Directorate cannot withhold a no-objection certificate for compounding applications unless serious contraventions are established, which was not the case here.
The Reserve Bank of India must return compounding applications if the Enforcement Directorate identifies serious contraventions suspected of money laundering.
Once a contravention has been compounded, no further proceedings can be initiated or continued against the person committing the contravention.
Compounding applications under the Foreign Exchange Management Act cannot be entertained post-adjudication, as they defeat the Act's intent to streamline penalty processes and require admission of co....
Rule of law which is one of the basic features of our Constitution envisages the administration of justice in accordance with law; Courts do this job ordinarily; a purported subordinate legislation w....
Financial irregularities – Impead of parties - Disputes in question can be effectively, completely and properly be adjudicated in the absence of applicant – Hence cannot be impleaded
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
