APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI FPA-FE-78/CHN/2014 Sh. Krishnaswamy Govindan … Appellant Versus The Special Director Directorate of Enforcement, Chennai … Respondent Advocates/Authorized Representatives who Argued For the appellant : Appellant in Person For the respondent : Mr. Vivek Gurnani, Adv.

Mr. Kanishk Maurya, Adv.

CORAM SHRI V. ANANDARAJAN : MEMBER SHRI RAJESH MALHOTRA : MEMBER

FINAL ORDER

09.10.2024 Dictated by Rajesh Malhotra:

Present appeal u/s 19 of the Foreign Exchange Management Act, 1999, is filed by the appellant against the order No. GAD/KSP/03/ CEZO/2014 dated 26.09.2014 passed by the Ld. Adjudicating Authority whereby penalty of Rs. 5 lakh was imposed upon the appellant for contravention of provisions of Section 3 (a) and 4 of FEMA, 1999.

2. As per the impugned order, the facts and circumstances leading to the complaint are that an information was received by the Enforcement Directorate, Chennai that a person called Shri Krishnaswamy Govindan was intercepted by the Officers of Directorate of Revenue Intelligence (DRI), Chennai on 2.8.2003 at Anna International Airport, Chennai, when he was about to leave for Singapore. The search of his baggage resulted in the recovery of foreign currencies viz. US$ 192150 & Singapore $ 97 both valued at Rs.89,76,024/-. The subsequent search on 3.8.2003 at his Hotel room No.119 at Karpagam International Hotel, Chennai resulted in the seizure of US$ 42500, Saudi Riyals 118000, both valued at Rs.35,09,140/-. Sh. Krishnaswamy Govindan was arrested and thereafter the adjudication of the case by the Commissioner of Customs, Chennai, led to the confiscation of the entire seized foreign exchange under Section 113(d) of the Customs Act, 1962 read with Section 3 of FEMA, 1999 and Regulation 5 of FEM (Export and Import of Currency) Regulations, 2000 and also imposition of a penalty of Rs. 10 lakhs under Section 114 of the Customs Act, 1962 on him. Based on the said information, Enforcement Directorate has initiated investigation under FEMA, 1999 against the said Shri Krishnaswamy Govindan. As the said Shri Krishnaswamy Govindan is a resident of Secunderabad, hence enquiries were initially initiated by the Assistant Director, Enforcement Directorate, Hyderabad. Shri Krishnaswamy Govindan has sent a letter dated 19.07.2004 to the office of Enforcement Directorate, Hyderabad enclosing copy of his reply to the Show Cause Notice issued by the Commissioner of Customs, Chennai and a copy of Judgment dated 23.03.2004 passed by the Hon’ble High Court of Madras setting aside his detention under COFEPOSA (Conservation of Foreign Exchange and Prevention of Smuggling Act), 1974. Summons under Section 37 of FEMA, 1999 requiring the Noticee to appear before the Assistant Director, Hyderabad was issued on 15.9.2004. Shri Krishnaswamy Govindan has sent a letter dated 15.09.2004 addressed to the Assistant Director. Enforcement Directorate, Hyderabad requesting for adjournment as he was in Chennai. He has also sent a telegram dated 15.09.2004 requesting one week time for his appearance. In his letter dated 26.08.2005, Shri Krishnaswamy Govindan has requested the Assistant Director, Enforcement Directorate, Hyderabad to allow him to appear before the Assistant Director, Enforcement Directorate, Chennai. Accordingly, the case has been transferred to Chennai office from Hyderabad office.

Shri Krishnaswamy Govindan was issued summons dated

13.3.2006 requiring him to appear before the Assistant Director, Enforcement Directorate, Chennai on 24.3.2006. Shri Krishnaswamy Govindan did not appear on the said date, but sent a telegram dated 24.3.2006 requesting for adjournment. Shri Krishnaswamy Govindan was again issued summons requiring him to appear before the Assistant Director, Chennai on 21.4.2006. But, instead of appearing, Shri Krishnaswamy Govindan chose to send a letter dated 20.4.2006 stating that he had spent about 8 months in Chennai Central Prison under COFEPOSA, 1974 and later-on the Hon’ble