1. The following order of the Appellate Tribunal for Foreign Exchange is delivered by Shri O.P. Nahar, Chairperson :

2. This is an appeal against adjudication order No.DD/MAS/180-181/92 dated 29.5.1992 passed by Deputy Director, Enforcement Directorate imposing a penalty of Rs. 70000 for contravention of Section 9(3) and Rs. 5000 for contravention of Section 9(1)(b) FER Act on the reasons that (i) appellant paid foreign currency equivalent Rs. 2,82,000 to a person resident of Zeddah as consideration and in lieu of receiving through a local person of a sum of Rs, 1,25,000 and (ii) appellant received Rs. 23,000 when he was in India from a local person by order or on behalf of one Hamza of Saudi Arabia. In this appeal the penalty amount is appropriated from the recovered currency from the appellant, hence, question of pre-deposit of penalty is not available so we proceeded to dispose of this appeal on merits.

3. We have heard Shri K.M. Sureshchandran, Advocate for the - appellant and Shri A.C. Singh, DLA, for respondent. Learned counsel has also filed written submissions which are taken on record.

4. This is an admitted position Indian currency of Rs. 1,50,750 is recovered from the