Back
IN THE HIGH COURT OF JUDICATURE AT MADRAS
R.SURESH KUMAR, HEMANT CHANDANGOUDAR
Advantage Strategic Consulting (P) Ltd. – Appellant
Versus
Assistant General Manager, Reserve Bank of India, Foreign Exchange Department, Fort Glacis, Rajaji Salai – Respondent
| Table of Content |
|---|
| 1. overview of the case and relevant fema provisions. (Para 1 , 2) |
| 2. discussion on legal procedures involved in compounding contraventions. (Para 3 , 4 , 5) |
| 3. clarification of the rbi's powers and the role of the enforcement directorate. (Para 6 , 7) |
| 4. examination of the appellants' arguments and the court's rejection. (Para 8 , 9 , 10) |
| 5. final ruling and conclusion of dismissal of the appeals. (Para 11 , 12) |
JUDGMENT :
HEMANT CHANDANGOUDAR, J.
These intra-court appeals assail the common order dated 02.04.2024 passed by the learned Single Judge in W.P. Nos. 19631 and 19632 of 2017. By the said order, the learned Single Judge dismissed the writ petitions filed by the appellants herein challenging the communication issued by the first respondent returning the compounding applications submitted by the appellants for compounding of contraventions under the Foreign Exchange Management Act, 1999 (for brevity, “ FEMA , 1999”). Since the issues involved in both the writ appeals are similar, they are taken up together, heard, and disposed of by this common judgment.
2. The complaint against the appellants was registered for alleged contraventions of the provisions of FEMA , 1999
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.
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....
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....
The Enforcement Directorate cannot withhold a no-objection certificate for compounding applications unless serious contraventions are established, which was not the case here.
The application of new compounding guidelines for offences under the Income Tax Act cannot override previously established rights affirmed by judicial orders, maintaining the principle of legal final....
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
